Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 295 - Taxation of superannuation entities  

Subdivision 295-B - Modifications of provisions of this Act  

SECTION 295-85   CGT to be primary code for calculating gains or losses  

295-85(1)  
The modifications in subsection (2) apply if a *CGT event happens involving a *CGT asset that was owned by a *complying superannuation entity just before the time of the event.

295-85(2)  
These provisions do not apply to the *CGT event:


(a) sections 6-5 (about *ordinary income), 8-1 (about amounts you can deduct), and 15-15 and 25-40 (about profit-making undertakings or plans);


(aa) section 230-15 (about financial arrangements);


(b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit-making undertakings or schemes).

Exceptions

295-85(3)  
The provisions referred to in subsection (2) can apply to the *CGT event if:


(a) any *capital gain or *capital loss from the event is attributable to currency exchange rate fluctuations; or


(b) the *CGT asset is one of these:


(i) debenture stock, a bond, *debenture, certificate of entitlement, bill of exchange, promissory note or other security;

(ii) a deposit with a bank, building society or other financial institution;

(iii) a loan (secured or not);

(iv) some other contract under which an entity is liable to pay an amount (whether the liability is secured or not).

295-85(4)  


The provisions referred to in subsection (2) can also apply to the *CGT event if a *capital gain or *capital loss from the event is disregarded because of one of the provisions in this table:


Where gain or loss disregarded because of CGT provision
Item Provision Brief description
1 Paragraph 104-15(4)(a) Title in a CGT asset does not pass when a hire purchase or similar agreement ends
2 Section 118-5 Cars, motor cycles and valour decorations
3 Section 118-10 Collectables and personal use assets
4 Section 118-13 Shares in a PDF
5 Section 118-25 Trading stock
6 Section 118-30 Film copyright
7 Section 118-35 R & D
8 Section 118-55 Foreign currency hedging gains and losses
9 Section 118-60 Certain gifts
10 Subsection 118-300(1), for general insurance policies covered by table item 2 in that subsection General insurance policies for property
11 Section 118-305 Superannuation
12 Section 118-310 CGT event happens to right to, or part of, RSA

Note:

For item 5, certain assets (particularly shares, units in a unit trust, and land) are not trading stock when owned by the entity (see paragraph 70-10(2)(b) ).


 

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