Income Tax Assessment Act 1997

Part 3-3 inserted by No 46 of 1998.

Div 152 inserted by No 165 of 1999 (as amended by No 173 of 2000).

S 152-325(1) amended by No 42 of 2009, s 3 and Sch 2 item 37, by inserting " (whether directly or indirectly through one or more interposed entities) " after " payment " , applicable to payments that are made (whether by a company or trust to comply with section 152-325 of the Income Tax Assessment Act 1997 or by an interposed entity) on or after 23 June 2009. For transitional provision relating to choice, see note under s 152-10(1) .

S 152-325(2A) inserted by No 10 of 2016, s 3 and Sch 1 item 16, applicable in relation to look-through earnout rights created on or after 24 April 2015. For transitional provision, see note under Subdiv 118-I heading.

S 152-325(3A) inserted by No 15 of 2007, s 3 and Sch 2 item 7. Act No 143 of 2007 , s 3 and Sch 5 item 28 substitutes the application of this amendment with the following:

(1)
The amendments apply to:

(a) individuals who:

(i) make the choice referred to in subsection 152-305(1) of the Income Tax Assessment Act 1997 ; or

(ii) receive capital proceeds from a CGT event; and

(b) companies or trusts that make a payment referred to in section 152-325 of the Income Tax Assessment Act 1997 ;

after 30 June 2007, regardless of when the relevant CGT event happened.

S 152-325(7), (8) and (9) substituted for s 152-325(7) and (8) by No 15 of 2007, s 3 and Sch 2 item 8. Act No 143 of 2007 , s 3 and Sch 5 item 28 substitutes the application of this amendment with the following:

(1)
The amendments apply to:

(a) individuals who:

(i) make the choice referred to in subsection 152-305(1) of the Income Tax Assessment Act 1997 ; or

(ii) receive capital proceeds from a CGT event; and

(b) companies or trusts that make a payment referred to in section 152-325 of the Income Tax Assessment Act 1997 ;

after 30 June 2007, regardless of when the relevant CGT event happened.

S 152-325(7) formerly read:

Payment taken to be for termination of employment or ETP

152-325(7)
This Act applies to a payment as if the payment:

(a) for a *CGT concession stakeholder who is an employee of the company or trust - were made in consequence of the termination of employment of the stakeholder; or

(b) for another CGT concession stakeholder - were an *eligible termination payment.

Note:

For the rules about eligible termination payments, see Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936 .

S 152-325(7), (8) and (9) substituted for s 152-325(7) and (8) by No 15 of 2007, s 3 and Sch 2 item 8. Act No 143 of 2007 , s 3 and Sch 5 item 28 substitutes the application of this amendment with the following:

(1)
The amendments apply to:

(a) individuals who:

(i) make the choice referred to in subsection 152-305(1) of the Income Tax Assessment Act 1997 ; or

(ii) receive capital proceeds from a CGT event; and

(b) companies or trusts that make a payment referred to in section 152-325 of the Income Tax Assessment Act 1997 ;

after 30 June 2007, regardless of when the relevant CGT event happened.

S 152-325(8) formerly read:

152-325(8)
If a *CGT concession stakeholder is under 55 just before receiving a payment under this section, an amount equal to that payment must be rolled over (within the meaning of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936 ) except by being paid as mentioned in paragraph 27A(12)(c) of that Act.

Note:

Paragraph 12A(12)(c) of the Income Tax Assessment Act 1936 deals with payments to life companies to purchase certain annuities.

S 152-325(9) substituted by No 42 of 2009, s 3 and Sch 2 item 38, applicable to payments that are made (whether by a company or trust to comply with section 152-325 of the Income Tax Assessment Act 1997 or by an interposed entity) on or after 23 June 2009. For transitional provision relating to choice, see note under s 152-10(1) . S 152-325(9) formerly read:

152-325(9)
If:

(a) a payment is made to a *CGT concession stakeholder in accordance with this section (disregarding section 109 of the Income Tax Assessment Act 1936 ); and

(b) the stakeholder is an employee of the company or trust;

treat the payment, for the purposes of section 109 of that Act, as made in consequence of the termination of employment of the stakeholder.

S 152-325(7), (8) and (9) substituted for s 152-325(7) and (8) by No 15 of 2007, s 3 and Sch 2 item 8. Act No 143 of 2007 , s 3 and Sch 5 item 28 substitutes the application of this amendment with the following:

(1)
The amendments apply to:

(a) individuals who:

(i) make the choice referred to in subsection 152-305(1) of the Income Tax Assessment Act 1997 ; or

(ii) receive capital proceeds from a CGT event; and

(b) companies or trusts that make a payment referred to in section 152-325 of the Income Tax Assessment Act 1997 ;

after 30 June 2007, regardless of when the relevant CGT event happened.

S 152-325(10) inserted by No 42 of 2009, s 3 and Sch 2 item 38, applicable to payments that are made (whether by a company or trust to comply with section 152-325 of the Income Tax Assessment Act 1997 or by an interposed entity) on or after 23 June 2009. For transitional provision relating to choice, see note under s 152-10(1) .

S 152-325(11) inserted by No 42 of 2009, s 3 and Sch 2 item 38, applicable to payments that are made (whether by a company or trust to comply with section 152-325 of the Income Tax Assessment Act 1997 or by an interposed entity) on or after 23 June 2009. For transitional provision relating to choice, see note under s 152-10(1) .

S 152-325 substituted by No 55 of 2007 , s 3 and Sch 1 item 55, applicable to CGT events happening in the 2006-07 income year or later income years. S 152-325 formerly read:

SECTION 152-325 Company or trust conditions  
152-325(1)
Each time a company or trust receives an amount of *capital proceeds from a *CGT event for which it makes a choice under this Subdivision, the company or trust must make an *eligible termination payment in relation to each of its *CGT concession stakeholders.

152-325(2)
If there are 2 such stakeholders, the amount of each such *eligible termination payment is to be worked out by reference to each individual ' s percentage (see subsection 152-315(5) ) of the relevant *CGT exempt amount.

152-325(3)
The payment must be made by the later of:

(a) 7 days after it makes the choice; and

(b) 7 days after it receives an amount of *capital proceeds from the *CGT event.

152-325(4)
In working out those *capital proceeds, disregard the *market value substitution rule (see section 116-30 ).

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History

S 152-325(4) substituted by No 173 of 2000.

152-325(5)
The amount of the *eligible termination payment, or the sum of the amounts of the eligible termination payments, required to be made under subsection (1) must be equal to the lesser of:

(a) the amount of *capital proceeds received; and

(b) the relevant *CGT exempt amount.

152-325(6)
If this section requires the company or trust to make 2 or more *eligible termination payments to a single stakeholder (whether or not by the same time), the company or trust may meet that requirement by making one payment or by making separate payments.

152-325(7)
If a stakeholder is under 55 just before receiving an *eligible termination payment under subsection (1), an amount equal to that payment must be rolled over (within the meaning of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936 ) except by being paid as mentioned in paragraph 27A(12)(c) of that Act.

Note:

Paragraph 27A(12)(c) of the Income Tax Assessment Act 1936 deals with payments to life companies to purchase certain annuities.

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History

S 152-325(7) amended by No 101 of 2004 and No 173 of 2000.

S 152-325 inserted by No 165 of 1999 (as amended by No 173 of 2000).