Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-30
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SUPERANNUATION
Division 295
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Taxation of superannuation entities
Subdivision 295-B
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Modifications of provisions of this Act
SECTION 295-85
CGT to be primary code for calculating gains or losses
295-85(1)
The modifications in subsection (2) apply if a *CGT event happens involving a *CGT asset that was owned by a *complying superannuation entity just before the time of the event.
295-85(2)
These provisions do not apply to the *CGT event:
(a) sections 6-5 (about *ordinary income), 8-1 (about amounts you can deduct), and 15-15 and 25-40 (about profit-making undertakings or plans);
(aa) section 230-15 (about financial arrangements);
(b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit-making undertakings or schemes).
Exceptions
295-85(3)
The provisions referred to in subsection (2) can apply to the *CGT event if:
(a) any *capital gain or *capital loss from the event is attributable to currency exchange rate fluctuations; or
(b) the *CGT asset is one of these:
295-85(4)
The provisions referred to in subsection (2) can also apply to the *CGT event if a *capital gain or *capital loss from the event is disregarded because of one of the provisions in this table:
View history note
Hide history noteThe modifications in subsection (2) apply if a *CGT event happens involving a *CGT asset that was owned by a *complying superannuation entity just before the time of the event.
295-85(2)
These provisions do not apply to the *CGT event:
(a) sections 6-5 (about *ordinary income), 8-1 (about amounts you can deduct), and 15-15 and 25-40 (about profit-making undertakings or plans);
(aa) section 230-15 (about financial arrangements);
(b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit-making undertakings or schemes).
Exceptions
295-85(3)
The provisions referred to in subsection (2) can apply to the *CGT event if:
(a) any *capital gain or *capital loss from the event is attributable to currency exchange rate fluctuations; or
(b) the *CGT asset is one of these:
(i) debenture stock, a bond, *debenture, certificate of entitlement, bill of exchange, promissory note or other security;
(ii) a deposit with a bank, building society or other financial institution;
(iii) a loan (secured or not);
(iv) some other contract under which an entity is liable to pay an amount (whether the liability is secured or not).
295-85(4)
The provisions referred to in subsection (2) can also apply to the *CGT event if a *capital gain or *capital loss from the event is disregarded because of one of the provisions in this table:
| Where gain or loss disregarded because of CGT provision | ||
| Item | Provision | Brief description |
| 1 | Paragraph 104-15(4)(a) | Title in a CGT asset does not pass when a hire purchase or similar agreement ends |
| 2 | Section 118-5 | Cars, motor cycles and valour decorations |
| 3 | Section 118-10 | Collectables and personal use assets |
| 4 | Section 118-13 | Shares in a PDF |
| 5 | Section 118-25 | Trading stock |
| 6 | Section 118-30 | Film copyright |
| 7 | Section 118-35 | R & D |
| 8 | Section 118-55 | Foreign currency hedging gains and losses |
| 9 | Section 118-60 | Certain gifts |
| 10 | Subsection 118-300(1), for general insurance policies covered by table item 2 in that subsection | General insurance policies for property |
| 11 | Section 118-305 | Superannuation |
| 12 | Section 118-310 | CGT event happens to right to, or part of, RSA |
Note:
For item 5, certain assets (particularly shares, units in a unit trust, and land) are not trading stock when owned by the entity (see paragraph 70-10(2)(b) ).
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