Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 1AB - Certain State/Territory bodies exempt from income tax  

Subdivision B - Body ceasing to be an STB  

SECTION 24AX   SPECIAL PROVISIONS RELATING TO CAPITAL GAINS AND LOSSES  

24AX(1)   Period after cessation date - prior net capital losses to be disregarded.  

In determining if an amount is to be included in the assessable income of the body under Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997 for a period that occurred after the cessation, any net capital losses incurred before the cessation are to be disregarded.

24AX(2)   Special cases where net capital gain before cessation and net capital loss after cessation.  

Subsections (3) and (4) apply if:

(a) a net capital gain accrued in the period before the cessation; and

(b) if the period from the cessation until the end of the year of income were treated as a year of income - a net capital loss would have accrued in that period.

24AX(3)   Special case 1 - gain exceeds loss.  

If this subsection applies and the net capital gain exceeds the net capital loss:

(a) the amount that is to be included in the assessable income of the body for the period that occurred before the cessation as a result of the net capital gain accruing to the body is taken to be the amount by which the net capital gain exceeds the net capital loss; and

(b) no net capital gain is taken to have accrued, and no net capital loss is taken to have been incurred, in any period in the cessation year after the cessation; and

(c) in determining if a net capital gain accrued to, or a net capital loss was incurred by, the body for the year following the cessation year, no net capital loss is taken to have been incurred by the body in the cessation year.

24AX(4)   Special case 2 - loss equal to or exceeds gain.  

If this subsection applies and the net capital gain does not exceed the net capital loss:

(a) no amount is to be included in the assessable income of the body for any period in the cessation year as a result of a net capital gain accruing to the body; and

(b) in determining if a net capital gain accrued to, or a net capital loss was incurred by, the body for the year following the cessation year, the net capital loss that the body incurred in the cessation year is taken to be the amount (if any) by which the net capital loss exceeds the net capital gain.