Income Tax Assessment Act 1997



Division 152 - Small business relief  

Subdivision 152-A - Basic conditions for relief under this Division  

Treatment of passively held CGT assets

SECTION 152-47   Spouses or children taken to be affiliates for certain passively held CGT assets  

This section applies if:

(a) one entity (the asset owner ) owns a *CGT asset (whether the asset is tangible or intangible); and

(b) either:

(i) the asset is used, or held ready for use, in the course of carrying on a *business in an income year by another entity (the business entity ); or

(ii) the asset is inherently connected with a business that is carried on in an income year by another entity (the business entity ); and

(c) the business entity is not (apart from this section) an *affiliate of, or *connected with, the asset owner.


The meaning of connected with an entity is affected by section 152-78 .

For the purposes of this Subdivision, in determining whether the business entity is an *affiliate of, or is *connected with, the asset owner, take the following to be affiliates of an individual:

(a) a *spouse of the individual;

(b) a *child of the individual, being a child who is under 18 years.

If an entity is an *affiliate of, or *connected with, another entity as a result of subsection (2), then the *spouse or *child mentioned in that subsection is, in addition, taken to be an affiliate of the individual for the purposes of this Subdivision, and for the purposes of sections 328-110 to 328-125 to the extent that they relate to this Subdivision.


The spouse or child mentioned in subsection (2) is taken to be an affiliate of the individual for the purposes of working out which entities are affiliates of or connected with entities under section 152-48 .

To avoid doubt, subsection (2) applies:

(a) for the purposes of reducing or disregarding, under this Division, any *capital gain from any *CGT asset; but

(b) only while:

(i) a *spouse remains a spouse; or

(ii) a *child remains a child who is under 18 years.


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