Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 115 - Discount capital gains and trusts ' net capital gains  

Subdivision 115-B - Discount percentage  

SECTION 115-125   Investors disposing of property used for affordable housing  

Object

115-125(1)  
The object of this section is to increase the discount percentage to the extent that the *discount capital gain relates to a *dwelling used to *provide affordable housing. When this section applies

115-125(2)  
This section applies to a *discount capital gain if:


(a) you are an individual; and


(b) either:


(i) you make the discount capital gain from a *CGT event happening in relation to a *CGT asset that is your *ownership interest in a *dwelling; or

(ii) because of section 115-215 , Division 102 applies to you as if you had made the discount capital gain for a *capital gain of a trust covered by subsection (3); and


(c) where subparagraph (b)(ii) applies - the trust ' s capital gain was made directly, or indirectly through one or more entities that are all covered by subsection (3), from a CGT event happening in relation to a CGT asset that is an ownership interest in a dwelling; and


(d) the dwelling was used to *provide affordable housing on at least 1095 days:


(i) before the CGT event; and

(ii) during your, or the relevant trustee ' s or partner ' s, *ownership period of that dwelling; and

(iii) on or after 1 January 2018.

The days mentioned in paragraph (d) need not be consecutive.

Note:

1095 days is the same as 3 years.

115-125(3)  
This subsection covers the following:


(a) a trust, other than a *superannuation fund or a public unit trust (within the meaning of section 102P of the Income Tax Assessment Act 1936 );


(b) a *managed investment trust;


(c) a partnership. Discount percentage

115-125(4)  
The percentage resulting from this section is the sum of:


(a) the *discount percentage that would apply to the *discount capital gain apart from this section; and


(b) the result (expressed as a percentage) of subsection (5).

115-125(5)  
Work out the following:


*Discount percentage that would apply to the *discount capital gain apart from this section × Affordable housing days
5 Total ownership days

where:

affordable housing days
means the number of days during that *ownership period (see paragraph (2)(d)) of the *dwelling, and on or after 1 January 2018, on which:


(a) the dwelling was used to *provide affordable housing; and


(b) you were neither a foreign resident nor a *temporary resident.

total ownership days
means the number of days during that *ownership period (see paragraph (2)(d)) of the *dwelling, less the number of days after 8 May 2012 during that ownership period that you were a foreign resident or a *temporary resident.


 

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