INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 2 - Application  

SECTION 160L   PART APPLIES IN RESPECT OF DISPOSALS OF ASSETS  

160L(1)   [Disposals on or after 20 September 1985 by residents]  

Subject to this section, this Part applies in respect of every disposal on or after 20 September 1985 of an asset, whether situated in Australia or elsewhere or not situated anywhere, that:

(a) immediately before the disposal took place, was owned by:

(i) a person (not being a person in the capacity of a trustee) who was a resident of Australia; or

(ii) a person in the capacity of a trustee of a resident trust estate or of a resident unit trust; and

(b) was acquired by that person on or after 20 September 1985.

160L(2)   [Disposals on or after 20 September 1985 by non-residents]  

Subject to this section, this Part also applies in respect of every disposal on or after 20 September 1985 of a taxable Australian asset that:

(a) immediately before the disposal took place, was owned by:

(i) a person (not being a person in the capacity of a trustee) who was not a resident of Australia; or

(ii) a person in the capacity of a trustee of a trust estate that was not a resident trust estate or of a unit trust that was not a resident unit trust; and

(b) was acquired by that person on or after 20 September 1985.

160L(3)   [Disposals not affected]  

This Part does not apply in respect of a disposal of an asset, not being an asset referred to in subsection (4) or (5), if:

(a) at the time of the disposal the asset constituted trading stock of the taxpayer for the purposes of this Act; or

(b) (Omitted by No 138 of 1994)

(c) as a result of the disposal an amount has been or will be, or but for section 23H would have been or would be, included in the assessable income of the taxpayer of any year of income by virtue of section 26AG ; or

(d) as a result of the disposal an amount has been or will be included in the assessable income of the taxpayer of any year of income by virtue of subsection 73B(27A) .

160L(4)   [Disposals not affected - trustees]  

This Part does not apply in respect of a disposal of an asset, being an asset which was owned by a taxpayer in the capacity of a trustee of a trust estate and to which a beneficiary was absolutely entitled immediately before the disposal, if:

(a) at the time of the disposal, the asset constituted trading stock of the trustee for the purposes of this Act; or

(b) (Omitted by No 138 of 1994)

(c) as a result of the disposal an amount has been or will be, or but for section 23H would have been or would be, included in the assessable income of the beneficiary, or the net income of the trust estate, of any year of income by virtue of section 26AG ; or

(d) as a result of the disposal an amount has been or will be included in the assessable income of the beneficiary, or the net income of the trust estate, of any year of income by virtue of subsection 73B(27A) .

160L(5)   [Disposals not affected - partnerships]  

This Part does not apply in respect of a disposal of a taxpayer's interest in a partnership asset of a partnership in which the taxpayer is a partner if:

(a) at the time of the disposal, the partnership asset constituted trading stock of the partnership for the purposes of this Act; or

(b) (Omitted by No 138 of 1994)

(c) as a result of the disposal an amount has been or will be, or but for section 23H would have been or would be, included in the net income of the partnership, or in the assessable income of a partner in the partnership, or taken into account in ascertaining the amount of the partnership loss, of any year of income by virtue of section 26AG; or

(d) as a result of the disposal an amount has been or will be included in the assessable income of a partner in the partnership of any year of income by virtue of subsection 73B(27A) .

160L(6)   [Valour or brave conduct decorations]  

This Part does not apply in respect of a disposal of a decoration awarded for valour or brave conduct if the person disposing of the decoration did not pay or give any consideration in respect of his or her acquisition of the decoration.

160L(6A)   [Payment or reimbursement under government schemes]  

This Part does not apply to a disposal (other than a disposal by way of assignment) by a taxpayer of a right to reimbursement, or to payment, under a scheme, of expenses of the taxpayer in participating in the scheme where the scheme is:

(a) established by the Commonwealth, a State or a Territory or by an authority of the Commonwealth, of a State or of a Territory; and

(b) prescribed for the purposes of this subsection under regulations applying to the time of the disposal (whether the regulations concerned are made before or after the time of the disposal).

160L(6B)   [Amendment of assessments]  

Nothing in section 170 prevents the amendment of an assessment for the purpose of giving effect to subsection (6A).

160L(7)   [Rights to mine]  

This Part does not apply in respect of a disposal being a sale, transfer or assignment of rights to mine if section 330-60 of the Income Tax Assessment Act 1997 applies in relation to the sale, transfer or assignment.

160L(8)   [Disposals of created assets]  

Where:

(a) an asset was disposed of by a taxpayer before 23 May 1986; and

(b) the asset was created after 19 September 1985 (whether the asset existed, either by itself or as part of another asset, before the disposal or was created by the disposal); and

(c) the asset consisted of a legal or equitable estate or interest in, or a right, power or privilege over, or in connection with, another asset that was acquired by that taxpayer before 20 September 1985;

this Part is taken not to have applied in respect of the disposal.

160L(9)   [Cultural Bequests Program]  

This Part does not apply in respect of the disposal by a person of an asset under the scheme formulated by the Australian Government and known as the Cultural Bequests Program.