Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

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

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Division 102 - Assessable income includes net capital gain

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Operative provisions

SECTION 102-30

102-30 Exceptions and modifications

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Provisions of this Act are in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .

Special rules affecting capital gains and capital losses
Item	For this kind of entity:	There are these special rules:	See:
1	All entities	You can subtract capital losses from collectables only from your capital gains from collectables.	section 108-10
.
2	All entities	Disregard capital losses you make from personal use assets.	section 108-20
.
2AA	Beneficiary of trust that makes a capital gain taken into account in working out the net income of the trust	The beneficiary is treated as having an extra capital gain corresponding to the beneficiary ' s share of the capital gain (taking into account adjustments in respect of the CGT discount and small business concessions).	Subdivision 115-C
.
2A	(Repealed by No 165 of 1999)

2B	(Repealed by No 165 of 1999)
.
3	All entities	If any of your commercial debts have been forgiven in the income year, your net capital losses (including net capital losses from collectables) may be reduced.	sections 245-130 and 245-135
.
4	A company	If it has a change of ownership or control during the income year, and has not satisfied the business continuity test, it works out its net capital gain and net capital loss in a special way.	Subdivision 165-CB
.
5	A company	It cannot apply a net capital loss unless:	Subdivision 165-CA
		•	the same people owned the company during the loss year, the income year and any intervening year; and
		•	no person controlled the company ' s voting power at any time during the income year who did not also control it during the whole of the loss year and any intervening year;
		or the company has satisfied the business continuity test.
.
6	A company	If one or more of these things happen:	Division 175
		•	a capital gain or loss is injected into it;
		•	a tax benefit is obtained from its available net capital losses or current year capital losses;
		•	a tax benefit is obtained because of its available capital gains;
		the Commissioner can disallow its net capital losses or current year capital losses, and it may have to work out its net capital loss in a special way.
.
7	A company	A company can transfer a surplus amount of its net capital loss to another company so that the other company can apply the amount in the income year of the transfer. (Both companies must be members of the same wholly-owned group.)	Subdivision 170-B
.
7A	The head company of a consolidated group or a MEC group	The head company of a consolidated group or a MEC group must apply the capital loss from CGT event L1 over at least 5 income years	section 104-500
.
8	A PDF	If it is a PDF at the end of an income year for which it has a net capital loss, it can apply the loss in a later income year only if it is a PDF throughout the last day of the later income year.	section 195-25
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9	A PDF	If it becomes a PDF during an income year, it works out its net capital gain and net capital loss for the income year in a special way.	section 195-35
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10	Body that has ceased to be an STB	Net capital losses made before cessation disregarded. Special rules apply in cessation year where net capital gain before cessation and net capital loss after cessation.	section 24AX
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10A	All entities	Division 316 contains special rules affecting capital gains and capital losses connected with demutualisation of friendly society health or life insurers.	Division 316
.
11	A life insurance company	Division 320 contains special rules that apply to capital gains and capital losses	Division 320
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12	A company	The capital gain or capital loss a company makes from a CGT event that happened to a share in a company that is a foreign resident may be reduced.	Subdivision 768-G
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13	A PDF	Sections 102-5 and 102-10 do not apply to the calculation of net capital gains and losses. Capital gains and losses are instead allocated to separate classes of income.	Subdivision C of Division 10E of Part III
.
14	A CFC	In calculating the CFC ' s attributable income, pre-1 July 1990 capital losses are disregarded.	section 409

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History

S 102-30 amended by No 7 of 2019, s 3 and Sch 1 item 36, by substituting " business continuity test " for " same business test " in table items 4 and 5, effective 1 April 2019 and applicable in relation to income years starting on or after 1 July 2015.

S 102-30 amended by No 62 of 2011, s 3 and Sch 2 item 46, by substituting table item 2AA, effective 29 June 2011. For application provisions see note under s 115-200 . Table item 2AA formerly read:

2AA Beneficiary of trust whose net income includes a net capital gain The beneficiary is treated as having: Subdivision 115-C

(a) an extra capital gain equal to each amount of the beneficiary ' s share of the net income that is attributable to the trust ' s capital gains that are not reduced under step 3 of the method statement in subsection 102-5(1) or Subdivision 152-C; and

(b) an extra capital gain of double each amount of the beneficiary ' s share of the net income that is attributable to the trust ' s capital gains that are reduced under either step 3 of the method statement or Subdivision 152-C but not both; and

(c) an extra capital gain of 4 times each amount of the beneficiary ' s share of the net income that is attributable to the trust ' s capital gains that are reduced under both step 3 of the method statement and Subdivision 152-C.

S 102-30 (table) amended by No 79 of 2010 , s 3 and Sch 2 item 26, by omitting " of Schedule 2C to the Income Tax Assessment Act 1936 " after " sections 245-130 and 245-135 " in table item 3, effective 1 July 2010.

S 102-30 (table) amended by No 88 of 2009, s 3 and Sch 3 item 6, by inserting item 10A, applicable in relation to demutualisations occurring on or after 1 July 2008.

S 102-30 amended by No 147 of 2005, No 96 of 2004, No 107 of 2003, No 117 of 2002, No 89 of 2000, No 169 of 1999, No 165 of 1999, No 94 of 1999 and inserted by No 46 of 1998.

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2AA	Beneficiary of trust whose net income includes a net capital gain	The beneficiary is treated as having:	Subdivision 115-C
		(a)	an extra capital gain equal to each amount of the beneficiary ' s share of the net income that is attributable to the trust ' s capital gains that are not reduced under step 3 of the method statement in subsection 102-5(1) or Subdivision 152-C; and
		(b)	an extra capital gain of double each amount of the beneficiary ' s share of the net income that is attributable to the trust ' s capital gains that are reduced under either step 3 of the method statement or Subdivision 152-C but not both; and
		(c)	an extra capital gain of 4 times each amount of the beneficiary ' s share of the net income that is attributable to the trust ' s capital gains that are reduced under both step 3 of the method statement and Subdivision 152-C.