Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

Division 118 - Exemptions  

Subdivision 118-B - Main residence  

Special disability trusts

SECTION 118-218   Exemption available to trustee - main case  

118-218(1)    
This section applies to you in relation to a *CGT event if:

(a) the CGT event happens in relation to a *CGT asset; and

(b) just before the CGT event happens, you hold the CGT asset as trustee of a trust; and

(c) the trust was a *special disability trust on at least one of the days on which you held the CGT asset.

Note:

This section may not apply if the principal beneficiary of the trust is a foreign resident (see subsection (5)).

118-218(2)    
For the purposes of applying this Subdivision in relation to the *CGT event, on each day to which paragraph (1)(c) applies:

(a) treat yourself as holding the *CGT asset personally (and not as trustee of the trust); and

(b) if the *principal beneficiary of the trust uses the applicable *dwelling in a particular way on that day - treat yourself as using the dwelling in that way on that day.

Example:

If the principal beneficiary uses the dwelling as his or her main residence on the day, then treat yourself as using the dwelling as your main residence on that day.

Note 1:

The CGT asset need not be a dwelling (or an ownership interest in a dwelling) if it is land adjacent to a dwelling, an adjacent structure of a flat or home unit, or an ownership interest in such an asset.

Note 2:

If the trustee is an individual, the individual ' s actual circumstances are ignored. Similarly, this subsection does not affect how this Subdivision applies for the individual ' s actual circumstances. See section 960-100 .

118-218(3)    
If you are not an individual, treat yourself as being an individual for the purposes of applying this Subdivision in relation to the *CGT event.

118-218(4)    
If the *CGT asset, or your *ownership interest in it, *passed to you as a beneficiary in a deceased estate:

(a) treat the deceased as never having used the applicable *dwelling for the *purpose of producing assessable income; and

(b) treat the dwelling as being the deceased ' s main residence on each day during the deceased ' s *ownership period;

for the purposes of applying this Subdivision in relation to the *CGT event.

118-218(5)    

Despite subsection (1), this section does not apply if, at the time the *CGT event happens, the *principal beneficiary of the trust:

(a) is an *excluded foreign resident; or

(b) is a foreign resident who does not satisfy the *life events test.