Tax Laws Amendment (2011 Measures No. 7) Act 2011 (147 of 2011)

Schedule 1   Removing tax issues facing special disability trusts

Part 1   Extending CGT main residence exemption to special disability trusts

Income Tax Assessment Act 1997

1   Subsection 104-75(6)

Repeal the subsection, substitute:

Exceptions for beneficiary

(6) A*capital gain or*capital loss the beneficiary makes is disregarded if:

(a) the beneficiary*acquired the*CGT asset that is the interest (except by way of an assignment from another entity) for no expenditure; or

(b) the beneficiary acquired it before 20 September 1985; or

(c) all or part of the capital gain or capital loss the trustee makes from the*CGT event is disregarded under Subdivision 118-B (about main residence).

Expenditure can include giving property: see section 103-5.

Note 1: For provisions affecting the application of Subdivision 118-B to the trustee, see sections 118-215 to 118-230.

Note 2: There are also exceptions for employee share trusts: see sections 130-80 and 130-90.