Income Tax Assessment Act 1997
This section sets out what happens if:
(a) there is a fall in the *market value of a *personal use asset (other than a car, motor cycle or similar vehicle) or a *collectable of a company or trust; and
(b) *CGT event A1, C2 or E8 happens to:
(i) *shares you own in the company (or in a company that is a member of the same *wholly-owned group); or
(ii) an interest you have in the trust.
The full list of CGT events is in section 104-5 .116-80(2)
The *capital proceeds from the event are replaced with the *market value of the *shares, or the interest in the trust.
The market value is worked out as at the time of the event as if the fall in market value of the *personal use asset or *collectable had not occurred.
You may also make a collectable loss: see CGT event K5.
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