Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 102 - Assessable income includes net capital gain  

Operative provisions  

SECTION 102-25   Order of application of CGT events  

102-25(1)    
Work out if a *CGT event (except *CGT events D1 and H2) happens to your situation. If more than one event can happen, the one you use is the one that is the most specific to your situation.

102-25(2)    

However, there are 3 exceptions: one for *CGT event J2, one for CGT event K5 and one for CGT event K12.

102-25(2A)    

If the circumstances that gave rise to *CGT event J2 constitute another CGT event, CGT event J2 applies in addition to the other event.

Example:

CGT event J2 happens because a replacement asset for a small business roll-over under Subdivision 152-E becomes your trading stock (in circumstances where CGT event K4 happens). Both CGT events apply.

102-25(2B)    
*CGT event K5 happens if CGT event A1, C2 or E8 happens. CGT event K5 applies in addition to the other event.

102-25(2C)    

If:

(a) *CGT events happen for which you make *capital gains or *capital losses; and

(b) the capital gains or losses are taken into account in working out a *foreign hybrid net capital loss amount; and

(c) the foreign hybrid net capital loss amount is itself taken into account in determining that *CGT event K12 happens;

CGT event K12 applies in addition to the other CGT events.

102-25(3)    
If no *CGT event (except *CGT events D1 and H2) happens:

(a) work out if CGT event D1 happens and use that event if it does; and

(b) if it does not, work out if CGT event H2 happens and use that event if it does.

Note:

The full list of CGT events is in section 104-5 .