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

Schedule 1   Removing tax issues facing special disability trusts

Part 2   CGT exemption for assets transferred to special disability trusts

Income Tax Assessment Act 1997

6   After section 118-80

Insert:

Special disability trusts

118-85 Special disability trusts

(1) A *capital gain or *capital loss you make is disregarded if you make it from transferring a *CGT asset for no consideration to:

(a) a *special disability trust; or

(b) a trust that becomes a special disability trust as soon as practicable after the transfer.

(2) In working out whether the transfer was for consideration, disregard any interest in the trust.