Income Tax Assessment Act 1997

s 104-71 — Adjustment of non ‑ assessable part

(1) In working out the non ‑ assessable part referred to in section 104 ‑ 70, disregard any part of the payment that is: (a) * non ‑ assessable non ‑ exempt income; or (c) paid from an amount that has been assessed to the trustee; or (d) paid from an amount that is * personal services income included in your assessable income, or another entity’s assessable income, under section 86 ‑ 15; or (da) a payment to which paragraph 118 ‑ 37(1)(ba) applies (about compensation paid through a trust); or (db) a payment to which subsection 118 ‑ 300(1A) applies (about insurance and annuity payments paid through a trust); or (e) repaid by you; or (f) compensation you paid that can reasonably be regarded as a repayment of all or part of the payment; or (g) an amount referred to in section 152 ‑ 125 (which exempts a payment of a small business 15 ‑ year exemption amount) as an exempt amount. The payment can include giving property (see section 103 ‑ 5). (2) However, the non ‑ assessable part is not reduced by any part of the payment that you can deduct. (3) The amount of the non ‑ assessable part referred to in section 104 ‑ 70 is adjusted to exclude any part of it that is attributable to: (a) an amount that is not included in the assessable income of an entity because of section 124ZM or 124ZN (which exempt income arising from * shares in a * PDF) of the Income Tax Assessment Act 1936 ; or (aa) an amount that is not included in the assessable income of an entity because of section 51 ‑ 52 or subsection 51 ‑ 54(1) or (1A) of this Act; or (b) * capital proceeds from a * CGT event that happens in relation to * shares in a company that was a * PDF when that event happened; or (c) capital proceeds from a CGT event if: (i) the CGT event relates to an * eligible venture capital investment; and (ii) the share of a partner in an ESVCLP in a * capital gain or * capital loss from the CGT event is disregarded under section 118 ‑ 407; or (d) that part of the capital proceeds from a CGT event, relating to an eligible venture capital investment, for which there is a partial exemption under section 118 ‑ 408; or (e) capital proceeds from a CGT event if a capital gain made from the event may be disregarded under subsection 360 ‑ 50(4). (4) The amount of the non ‑ assessable part referred to in section 104 ‑ 70 for an entity shown in the table is adjusted to exclude the amount or amounts applicable to the entity under the table. Adjustment of non ‑ assessable part Item Entity Amount excluded 1 Any entity So much of the amount of a * discount capital gain excluded from the * net capital gain of the trust making the payment because of step 5 of the method statement in subsection 102 ‑ 5(1) and that is reflected in the payment to the entity 2 Individual, company or trust that has a * capital loss or * net capital loss to reduce its * capital gain described in paragraph 115 ‑ 215(3)(b) where the trust gain referred to in subsection 115 ‑ 215(3) is reduced under Subdivision 152 ‑ C 1/2 of the amount of the capital loss or net capital loss 3 Individual or trust that has a * capital loss or * net capital loss to reduce its * capital gain described in paragraph 115 ‑ 215(3)(c) 1/4 of the amount of the capital loss or net capital loss 4 Company that has a * capital loss or * net capital loss to reduce its * capital gain described in paragraph 115 ‑ 215(3)(c) where: (a) that capital loss or net capital loss is more than 1/2 of the trust gain referred to in subsection 115 ‑ 215(3); and (b) that trust gain is reduced by an amount (the reduction amount) under Subdivision 152 ‑ C The excess of the reduction amount over the Subdivision 152 ‑ C reduction to the paragraph 115 ‑ 215(3)(c) amount 5 * Complying superannuation entity that has a * capital loss or * net capital loss to reduce its * capital gain described in paragraph 115 ‑ 215(3)(b) where: (a) that capital loss or net capital loss is more than 1/2 of the trust gain referred to in subsection 115 ‑ 215(3); and (b) that trust gain is reduced under Subdivision 152 ‑ C 1/2 of the amount of the capital loss or net capital loss 6 * Complying superannuation entity that has a * capital loss or * net capital loss to reduce its * capital gain described in paragraph 115 ‑ 215(3)(c) where: (a) that capital loss or net capital loss is more than 1/4 of the trust gain referred to in subsection 115 ‑ 215(3); and (b) that trust gain is reduced by an amount (also the reduction amount) under Subdivision 152 ‑ C The excess of the reduction amount over the Subdivision 152 ‑ C reduction to the paragraph 115 ‑ 215(3)(c) amount 7 Any entity receiving the payment where the trust making the payment, or another trust that is part of the same * chain of trusts, has a * capital loss or * net capital loss to reduce its * capital gain described in subsection 115 ‑ 215(3) The proportion of the capital loss or net capital loss reflected in the payment Example: Claude is paid $100 by the trustee of a unit trust. The trustee advises that the amount comprises $50 CGT discount, $25 small business 50% reduction and $25 net income from a capital gain made by the trust. In applying the rules in Subdivision 115 ‑ C of the Income Tax Assessment Act 1997 , Claude reduces his capital gain of $100 by a $20 net capital loss from an earlier year. He then reduces the remaining $80 gain by $40 (CGT discount) and $20 (small business 50% reduction) leaving a net capital gain of $20. In applying the rules in CGT event E4, the $100 payment is reduced by $25 (being the amount assessed under section 97 of the Income Tax Assessment Act 1936 ). It is further reduced by $50 under item 1 of the table and $5 under item 3. Claude’s non ‑ assessable part is $20. Effectively, CGT event E4 applies to the $20 small business 50% reduction allowed to Claude in applying Subdivision 115 ‑ C of the Income Tax Assessment Act 1997 . Note 1: Step 5 of the method statement in subsection 102 ‑ 5(1) (see table item 1) reduces by 50% the trust’s discount capital gains remaining after applying capital losses and earlier net capital losses. That 50% is excluded from the trust’s net capital gain. Note 2: Subdivision 152 ‑ C (small business 50% reduction—see table items 2, 3, 4, 5, 6 and 7) reduces by 50% the trust’s capital gains or discount capital gains remaining after applying step 5 of the method statement in subsection 102 ‑ 5(1). That 50% is also excluded from the trust’s net capital gain. Note 3: Paragraph 115 ‑ 215(3)(b) or (c) (see table items 2, 3, 4, 5 and 6) treats a beneficiary as having an extra capital gain if an amount of the trust’s net income that is included in the beneficiary’s assessable income is attributable to trust gains that were reduced by step 5 of the method statement in subsection 102 ‑ 5(1) and/or the small business 50% reduction. (5) A chain of trusts consists of 2 or more trusts where at least one of these conditions is satisfied for each of the trusts: (a) the trustee of the trust owns units or interests in another of the trusts; or (b) the trustee of another of the trusts owns units or interests in the trust. (6) Item 7 of the table in subsection (4) does not apply if the entity making the payment is a * managed investment trust.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Repealed and substituted by No 168 of 2001, effective Schedule 2: 1 July 2000 Remainder: Royal Assent | Amended by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A) | Amended by No 21 of 2015, effective s 4 and Sch 6 (items 1, 2, 16–25, 73): 19 Mar 2015 (s 2(1) items 1, 7–11, 13) Sch 1 (items 1–17, 49), Sch 3 and Sch 7 (items 13–21): 20 Mar 2015 (s 2(1) items 2, 4, 15) Sch 4 (items 1–5, 9–17): 1 July 2015 (s 2(1) item 5) Sch 6 (items 51–59, 74–79): never commences (s 2(1) items 12, 14) | Amended by No 54 of 2016, effective Sch 1 (items 1, 12–14, 19) and Sch 2 (items 1–5, 8–14, 20–34, 44–51, 53–56, 63–74, 76): 1 July 2016 (s 2(1) items 2–5, 7) | Amended by No 26 of 2017, effective Sch 1: 1 July 2017 (s 2(1) item 2) | Amended by No 4 of 2018, effective Sch 6 (items 9–20, 27): 21 Feb 2018 (s 2(1) item 1) | Amended by No 15 of 2019, effective Sch 1 (items 2–17, 46): 1 Apr 2019 (s 2(1) item 2) | Amended by No 49 of 2026, effective sch 1 (items 1-51, 54-59, 64-79A, 82-84), sch 3, sch 4 (items 1-17): 1 July 2026 (s 2(1) items 2-4, 6) sch 2 (items 1-5): 27 June 2026 (s 2(1) item 5)

s 104-72 — Reducing your capital gain under CGT event E4 if you are a trustee

(1) A * capital gain you make under subsection 104 ‑ 70(4) is reduced if: (a) you are the trustee of another trust that is a * fixed trust and is not a * complying superannuation entity; and (b) you are taken to have a * capital gain under paragraph 115 ‑ 215(3)(b) or (c) (your notional gain ) in respect of a corresponding trust gain (the trust gain ); and (c) some or all (the attributable amount ) of the total of the non ‑ assessable parts referred to in subsection 104 ‑ 70(4) is attributable to proceeds from the trust gain. (2) The * capital gain is reduced (but not below 0) by the lesser of: (a) your notional gain; and (b) the attributable amount.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Repealed and substituted by No 168 of 2001, effective Schedule 2: 1 July 2000 Remainder: Royal Assent

s 104-75 — Beneficiary becoming entitled to a trust asset: CGT event E5

(1) CGT event E5 happens if a beneficiary becomes absolutely entitled to a * CGT asset of a trust (except a unit trust or a trust to which Division 128 applies) as against the trustee (disregarding any legal disability the beneficiary is under). Note: Division 128 deals with the effect of death. (2) The time of the event is when the beneficiary becomes absolutely entitled to the asset. Trustee makes a capital gain or loss (3) The trustee makes a capital gain if the * market value of the asset (at the time of the event) is more than its * cost base. The trustee makes a capital loss if that market value is less than the asset’s * reduced cost base. Exception for trustee (4) A * capital gain or * capital loss the trustee makes is disregarded if it * acquired the asset before 20 September 1985. Note: There is also an exception for employee share trusts: see section 130 ‑ 80. Beneficiary makes a capital gain or loss (5) The beneficiary makes a capital gain if the * market value of the asset (at the time of the event) is more than the * cost base of the beneficiary’s interest in the trust capital to the extent it relates to the asset. The beneficiary makes a capital loss if that market value is less than the * reduced cost base of that beneficiary’s interest in the trust capital to the extent it relates to the asset. Exceptions for beneficiary (6) A * capital gain or * capital loss the beneficiary makes is disregarded if: (a) the beneficiary * acquired the * CGT asset that is the interest (except by way of an assignment from another entity) for no expenditure; or (b) the beneficiary acquired it before 20 September 1985; or (c) all or part of the capital gain or capital loss the trustee makes from the * CGT event is disregarded under Subdivision 118 ‑ B (about main residence). Expenditure can include giving property: see section 103 ‑ 5. Note 1: For provisions affecting the application of Subdivision 118 ‑ B to the trustee, see sections 118 ‑ 215 to 118 ‑ 230. Note 2: There are also exceptions for employee share trusts: see sections 130 ‑ 80 and 130 ‑ 90.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9)) | Amended by No 101 of 2003, effective s. 4, Schedule 1 (items 2–20, 22), Schedule 2 (items 1–12), Schedule 3 (items 2–6) and Schedule 6 (items 16, 22–25, 27, 28, 30): Royal Assent s. 5: 11 Oct 2002 Sch 6 (items 17–19): 1 July 1997 (s 2(1) items 17, 18) Sch 6 (items 20, 21): 21 Dec 2000 (s 2(1) items 19, 20) Sch 6 (item 26): 10 Dec 1999 (s 2(1) item 22) Sch 6 (item 29): 30 June 2000 (s 2(1) item 25) | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent | Amended by No 41 of 2011, effective Schedule 1 (items 1–3): 1 Jan 2011 Schedule 1 (items 4–6) and Schedule 5 (items 25–29, 33, 36–50, 74–78, 80–145, 148–167, 173–175, 383–396, 400, 414–418): Royal Assent Schedule 5 (items 9, 18–20): 28 June 2011 Schedule 5 (items 51–54): 1 July 2011 | Amended by No 147 of 2011, effective s. 4, Schedule 1, Schedule 5 (items 1–9, 16–20), Schedule 6 (items 1, 6) and Schedule 9: Royal Assent Schedule 8 (items 2–9, 37, 38, 41): 1 Jan 2012

s 104-80 — Disposal to beneficiary to end income right: CGT event E6

(1) CGT event E6 happens if the trustee of a trust (except a unit trust or a trust to which Division 128 applies) * disposes of a * CGT asset of the trust to a beneficiary in satisfaction of the beneficiary’s right, or part of it, to receive * ordinary income or * statutory income from the trust. Note: Division 128 deals with the effect of death. (2) The time of the event is when the disposal occurs. Trustee makes a capital gain or loss (3) The trustee makes a capital gain if the * market value of the asset (at the time of the disposal) is more than its * cost base. It makes a capital loss if that market value is less than the asset’s * reduced cost base. Exception for trustee (4) A * capital gain or * capital loss the trustee makes is disregarded if it * acquired the asset before 20 September 1985. Beneficiary makes a capital gain or loss (5) The beneficiary makes a capital gain if the * market value of the asset (at the time of the disposal) is more than the * cost base of the right, or the part of it. The beneficiary makes a capital loss if that market value is less than the * reduced cost base of the right or part. Note: If the beneficiary did not pay anything for the right, the market value substitution rule does not apply: see section 112 ‑ 20. Exception for beneficiary (6) A * capital gain or * capital loss the beneficiary makes is disregarded if it * acquired the * CGT asset that is the right before 20 September 1985.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9))

s 104-85 — Disposal to beneficiary to end capital interest: CGT event E7

(1) CGT event E7 happens if the trustee of a trust (except a unit trust or a trust to which Division 128 applies) * disposes of a * CGT asset of the trust to a beneficiary in satisfaction of the beneficiary’s interest, or part of it, in the trust capital. Note: Division 128 deals with the effect of death. (2) The time of the event is when the disposal occurs. Trustee makes a capital gain or loss (3) The trustee makes a capital gain if the * market value of the asset (at the time of the disposal) is more than its * cost base. It makes a capital loss if that market value is less than the asset’s * reduced cost base. Exception for trustee (4) A * capital gain or * capital loss the trustee makes is disregarded if it * acquired the asset before 20 September 1985. Beneficiary makes a capital gain or loss (5) The beneficiary makes a capital gain if the * market value of the asset (at the time of the disposal) is more than the * cost base of the interest, or the part of it, being satisfied. The beneficiary makes a capital loss if that market value is less than the * reduced cost base of that interest or part. Exceptions for beneficiary (6) A * capital gain or * capital loss the beneficiary makes is disregarded if: (a) the beneficiary * acquired the * CGT asset that is the interest (except by way of an assignment from another entity) for no expenditure; or (b) the beneficiary acquired it before 20 September 1985; or (c) all or part of the capital gain or capital loss the trustee makes from the * CGT event is disregarded under Subdivision 118 ‑ B (about main residence). Expenditure can include giving property: see section 103 ‑ 5. Note 1: For provisions affecting the application of Subdivision 118 ‑ B to the trustee, see sections 118 ‑ 215 to 118 ‑ 230. Note 2: There is also an exception for employee share trusts: see section 130 ‑ 90.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9)) | Amended by No 41 of 2011, effective Schedule 1 (items 1–3): 1 Jan 2011 Schedule 1 (items 4–6) and Schedule 5 (items 25–29, 33, 36–50, 74–78, 80–145, 148–167, 173–175, 383–396, 400, 414–418): Royal Assent Schedule 5 (items 9, 18–20): 28 June 2011 Schedule 5 (items 51–54): 1 July 2011 | Amended by No 147 of 2011, effective s. 4, Schedule 1, Schedule 5 (items 1–9, 16–20), Schedule 6 (items 1, 6) and Schedule 9: Royal Assent Schedule 8 (items 2–9, 37, 38, 41): 1 Jan 2012

s 104-90 — Disposal by beneficiary of capital interest: CGT event E8

(1) CGT event E8 happens if: (a) you are the beneficiary under a trust (except a unit trust or a trust to which Division 128 applies); and (b) you did not give any money or property to * acquire the * CGT asset that is your interest in the trust capital and you did not acquire it by assignment; and (c) you * dispose of the interest, or part of it (but not to the trustee). Note: Division 128 deals with the effect of death. (2) The time of the event is: (a) when you enter into the contract for the * disposal; or (b) if there is no contract—when you stop owning the interest or part. Note 1: You work out if you have made a capital gain or capital loss under sections 104 ‑ 95 and 104 ‑ 100. Note 2: There is a special indexation rule for this event: see section 114 ‑ 10.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 104-95 — Making a capital gain

You are the only beneficiary (1) If you are the only beneficiary with an interest in the trust capital and you * dispose of that interest, you work out if you have made a * capital gain in this way: Working out your capital gain Step 1. Work out the * capital proceeds from the * disposal. Step 2. Work out the * net asset amount. Step 3. If the Step 1 amount is greater , you make a capital gain equal to the difference. (2) The net asset amount is worked out in this way: Working out the net asset amount Step 1. Work out the total of the * cost bases (at the time of the disposal) of the * CGT assets that the trustee * acquired on or after 20 September 1985 and that formed part of the trust capital at that time. Step 2. Work out the total of the * market values (at the time of the disposal) of the * CGT assets that the trustee * acquired before 20 September 1985 and that formed part of the trust capital at that time. Step 3. Work out the amount of money that formed part of the trust capital at the time of the disposal. Step 4. Add up the Step 1, 2 and 3 amounts. Step 5. Subtract from the Step 4 amount any liabilities of the trust at the time of the disposal. Step 6. The result is the net asset amount . Example: You dispose of your interest in the trust capital for $10,000 (the capital proceeds). The total of the cost bases of the CGT assets that the trustee acquired on or after 20 September 1985 is $6,000. The total of the market values of the CGT assets that the trustee acquired before 20 September 1985 is $2,500. There is $1,000 in the trust. The trust liabilities are $500. The net asset amount is: You make a capital gain of: (3) If you * dispose of only part of that interest, any * capital gain is worked out using the method statement in subsection (1), except that the Step 2 amount is replaced by: Example: To vary the example in subsection (2), suppose you dispose of 50% of your interest for $5,000 (the capital proceeds). The Step 2 amount becomes: You make a capital gain of: There is more than one beneficiary (4) If you are not the only beneficiary with an interest in the trust capital and you * dispose of your interest, any * capital gain is worked out using the method statement in subsection (1), except that the Step 2 amount is replaced by: Example: To vary the example in subsection (2), suppose you have a 20% interest in the trust capital and you dispose of it for $4,000 (the capital proceeds). The Step 2 amount becomes: You make a capital gain of: (5) If you are not the only beneficiary with an interest in the trust capital and you * dispose of part of your interest, any * capital gain is worked out using the method statement in subsection (1), except that the Step 2 amount is replaced by: Example: To vary the example in subsection (2), suppose you have a 50% interest in the trust capital. You dispose of 20% of it for $1,000 (the capital proceeds). The Step 2 amount becomes: You make a capital gain of: Exception (6) A * capital gain you make is disregarded if you * acquired the * CGT asset that is the interest in the trust capital before 20 September 1985. Note: You can make a gain if you dispose of an interest in a trust that you acquired before that day: see CGT event K6.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9))

s 104-100 — Making a capital loss

You are the only beneficiary (1) If you are the only beneficiary with an interest in the trust capital and you * dispose of that interest, you work out if you have made a * capital loss in this way: Working out your capital loss Step 1. Work out the * capital proceeds from the * disposal. Step 2. Work out the * reduced net asset amount. Step 3. If the Step 1 amount is less , you make a capital loss equal to the difference. (2) The reduced net asset amount is worked out in this way: Working out the reduced net asset amount Step 1. Work out the total of the * reduced cost bases (at the time of the disposal) of the * CGT assets that the trustee * acquired on or after 20 September 1985 and that formed part of the trust capital at that time. Step 2. Work out the total of the * market values (at the time of the disposal) of the * CGT assets that the trustee * acquired before 20 September 1985 and that formed part of the trust capital at that time. Step 3. Work out the amount of money that formed part of the trust capital at the time of the disposal. Step 4. Add up the Step 1, 2 and 3 amounts. Step 5. Subtract from the Step 4 amount any liabilities of the trust at the time of the disposal. Step 6. The result is the reduced net asset amount . (3) If you * dispose of only part of that interest, any * capital loss is worked out using the method statement in subsection (1), except that the Step 2 amount is replaced by: There is more than one beneficiary (4) If you are not the only beneficiary with an interest in the trust capital and you * dispose of your interest, any * capital loss is worked out using the method statement in subsection (1), except that the Step 2 amount is replaced by: (5) If you are not the only beneficiary with an interest in the trust capital and you * dispose of part of your interest, any * capital loss is worked out using the method statement in subsection (1), except that the Step 2 amount is replaced by: Exception (6) A * capital loss you make is disregarded if you * acquired the * CGT asset that is the interest in the trust capital before 20 September 1985.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9))

s 104-105 — Creating a trust over future property: CGT event E9

(1) CGT event E9 happens if: (a) you agree for consideration that when property comes into existence you will hold it on trust; and (b) at the time of the agreement, no potential beneficiary under the trust has a beneficial interest in the rights created by the agreement. (2) The time of the event is when you made the agreement. (3) You make a capital gain if the * market value the property would have had if it had existed when you made the agreement is more than any * incidental costs you incurred that relate to the event. You make a capital loss if that market value is less . (4) The costs can include giving property: see section 103 ‑ 5. However, they do not include an amount you have received as * recoupment of them and that is not included in your assessable income, or an amount to the extent that you have deducted or can deduct it.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9))

s 104-107A — AMIT—cost base reduction exceeds cost base: CGT event E10

(1) CGT event E10 happens if: (a) you are a * member of an * AMIT in respect of an income year because you have a * CGT asset that is your unit or your interest in the AMIT; and (b) either: (i) the * cost base of that asset is reduced under subsection 104 ‑ 107B(2) during the income year; or (ii) the cost base of that asset is nil at the start of the income year; and (c) the asset’s * AMIT cost base net amount for the income year is the excess mentioned in paragraph 104 ‑ 107C(a); and (d) the asset’s AMIT cost base net amount for the income year exceeds the cost base of the asset. (2) The time of the event is: (a) if subparagraph (1)(b)(i) applies—the time at which the reduction occurs under section 104 ‑ 107B; or (b) if subparagraph (1)(b)(ii) applies—the time at which the * cost base would have been reduced under subsection 104 ‑ 107B(2) during the income year if the cost base had been greater than nil at the start of the income year. (3) You make a capital gain equal to: (a) if the * cost base of the asset is nil—the excess mentioned in paragraph 104 ‑ 107C(a); or (b) if the cost base of the asset is not nil—the excess mentioned in paragraph (1)(d) of this section. Note 1: If you make a capital gain, the cost base and reduced cost base of the CGT asset are reduced to nil (see paragraph 104 ‑ 107B(2)(a)). Note 2: You cannot make a capital loss. Exceptions (4) A * capital gain you make from * CGT event E10 is disregarded if you * acquired the * CGT asset that is the unit or interest before 20 September 1985.

Amendment history: Inserted by No 53 of 2016, effective Sch 1 (item 1), Sch 2, Sch 3 (items 2–4), Sch 4 (items 1–5), Sch 5 (items 2, 29–67, 75), Sch 6 (items 21–34), Sch 8 (item 1) and Sch 9: 5 May 2016 (s 2(1) items 2, 4) | Amended by No 15 of 2019, effective Sch 1 (items 2–17, 46): 1 Apr 2019 (s 2(1) item 2)

s 104-107B — Annual cost base adjustment for member’s unit or interest in AMIT

(1) This section applies if you are a * member of an * AMIT in respect of an income year because you have a * CGT asset that is your unit or your interest in the AMIT. (2) If the * CGT asset’s * AMIT cost base net amount for the income year is the excess mentioned in paragraph 104 ‑ 107C(a): (a) in a case where that AMIT cost base net amount exceeds the * cost base of the asset—reduce the cost base and * reduced cost base of the asset to nil; or (b) otherwise—reduce the cost base and reduced cost base of the asset by that AMIT cost base net amount. Note: If that AMIT cost base net amount exceeds the cost base of the asset, CGT event E10 will happen (see section 104 ‑ 107A). (3) If the * CGT asset’s * AMIT cost base net amount for the income year is the shortfall mentioned in paragraph 104 ‑ 107C(b), increase the * cost base and * reduced cost base of the asset by that AMIT cost base net amount. (4) The time of the reduction or increase is: (a) unless paragraph (b) applies—just before the end of the income year; or (b) if a * CGT event happens to the * CGT asset at a time when you hold it before the end of the income year—just before the time of that CGT event.

Amendment history: Inserted by No 53 of 2016, effective Sch 1 (item 1), Sch 2, Sch 3 (items 2–4), Sch 4 (items 1–5), Sch 5 (items 2, 29–67, 75), Sch 6 (items 21–34), Sch 8 (item 1) and Sch 9: 5 May 2016 (s 2(1) items 2, 4)

s 104-107C — AMIT cost base net amount

The * CGT asset’s AMIT cost base net amount for the income year is: (a) if the CGT asset’s * AMIT cost base reduction amount for the income year exceeds the CGT asset’s * AMIT cost base increase amount for the income year—the amount of the excess; or (b) if the CGT asset’s AMIT cost base reduction amount for the income year falls short of the CGT asset’s AMIT cost base increase amount for the income year—the amount of the shortfall.

Amendment history: Inserted by No 53 of 2016, effective Sch 1 (item 1), Sch 2, Sch 3 (items 2–4), Sch 4 (items 1–5), Sch 5 (items 2, 29–67, 75), Sch 6 (items 21–34), Sch 8 (item 1) and Sch 9: 5 May 2016 (s 2(1) items 2, 4)

s 104-107D — AMIT cost base reduction amount

(1) The * CGT asset’s AMIT cost base reduction amount for the income year is the total of: (a) money, and the * market value of any property, if: (i) you start to have a right to receive the money or property from the trustee of the * AMIT in the income year; and (ii) that right is indefeasible (disregarding section 276 ‑ 55) or is reasonably likely not to be defeated; and (b) all amounts of * tax offset that you have for the income year in respect of the AMIT because of the operation of section 276 ‑ 80; to the extent that the total is reasonably attributable to the CGT asset. (2) If: (a) * CGT event A1, C2, E1, E2, E6 or E7 happens to the * CGT asset before the end of the income year; and (b) as a result, the time of the reduction or increase mentioned in subsection 104 ‑ 107B(4) is just before the time of that CGT event; do not include in the CGT asset’s AMIT cost base reduction amount for the income year any * capital proceeds from that CGT event.

Amendment history: Inserted by No 53 of 2016, effective Sch 1 (item 1), Sch 2, Sch 3 (items 2–4), Sch 4 (items 1–5), Sch 5 (items 2, 29–67, 75), Sch 6 (items 21–34), Sch 8 (item 1) and Sch 9: 5 May 2016 (s 2(1) items 2, 4)

s 104-107E — AMIT cost base increase amount

(1) The * CGT asset’s AMIT cost base increase amount for the income year is the total of the 2 amounts set out in the following subsections. First amount—total of amounts not related to capital gains (2) The first amount is the total of all of the following amounts included in your assessable income or * non ‑ assessable non ‑ exempt income for the income year in respect of the * AMIT, to the extent that they are reasonably attributable to the * CGT asset: (a) amounts so included because of the operation of section 276 ‑ 80; (b) amounts so included otherwise than because of the operation of section 276 ‑ 80 (as reduced in accordance with section 276 ‑ 100). (3) For the purposes of subsection (2), disregard the * AMIT’s * net capital gain (if any) for the income year. Second amount—total of amounts related to capital gains (4) The second amount is the total of each * determined member component of a character relating to * capital gains that: (a) you have for the income year in respect of the * AMIT; and (b) is taken into account under section 276 ‑ 80. Residence assumption (5) For the purposes of working out amounts under subsections (2) and (4), assume that you are an Australian resident.

Amendment history: Inserted by No 53 of 2016, effective Sch 1 (item 1), Sch 2, Sch 3 (items 2–4), Sch 4 (items 1–5), Sch 5 (items 2, 29–67, 75), Sch 6 (items 21–34), Sch 8 (item 1) and Sch 9: 5 May 2016 (s 2(1) items 2, 4)

s 104-107F — Receipt of money etc. increasing AMIT cost base reduction amount not to be treated as income

(1) Subsections (2) and (3) apply if: (a) you start to have a right to receive any money or any property from the trustee of an * AMIT in an income year; and (b) the right is indefeasible (disregarding section 276 ‑ 55) or is reasonably likely not to be defeated; and (c) the right is not remuneration or consideration for you providing finance, services, goods or property to the trustee of the AMIT or to another person; and (d) the right is reasonably attributable to a * CGT asset that is a * membership interest in the AMIT; and (e) the CGT asset is neither * trading stock nor a * Division 230 financial arrangement; and (f) as a result of you starting to have the right, the CGT asset’s * AMIT cost base reduction amount for the income year is increased because of the operation of section 104 ‑ 107D. (2) These provisions do not apply to you starting to have the right: (a) sections 6 ‑ 5 (about * ordinary income), 8 ‑ 1 (about amounts you can deduct), 15 ‑ 15 and 25 ‑ 40 (about profit ‑ making undertakings or plans); (b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit ‑ making undertakings or schemes). (3) Section 6 ‑ 10 (about * statutory income) does not apply to you starting to have the right except so far as that section applies in relation to section 102 ‑ 5 (about net capital gains).

Amendment history: Inserted by No 53 of 2016, effective Sch 1 (item 1), Sch 2, Sch 3 (items 2–4), Sch 4 (items 1–5), Sch 5 (items 2, 29–67, 75), Sch 6 (items 21–34), Sch 8 (item 1) and Sch 9: 5 May 2016 (s 2(1) items 2, 4) | Amended by No 15 of 2019, effective Sch 1 (items 2–17, 46): 1 Apr 2019 (s 2(1) item 2)

s 104-107G — Effect of AMIT cost base net amount on cost of AMIT membership interest or unit that is a revenue asset—adjustment of cost of asset

(1) This section applies if: (a) you are a * member of an * AMIT in respect of an income year because you have a * CGT asset that is your unit or your interest in the AMIT; and (b) the CGT asset is a * revenue asset; and (c) the CGT asset is not a * Division 230 financial arrangement. (2) Make the adjustments in subsection (3) for the purposes of working out an amount included in your assessable income (or working out an amount treated as a deduction) under any of these provisions: (a) sections 6 ‑ 5 (about * ordinary income), 8 ‑ 1 (about amounts you can deduct), 15 ‑ 15 and 25 ‑ 40 (about profit ‑ making undertakings or plans); (b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit ‑ making undertakings or schemes). (3) If the * CGT asset’s * AMIT cost base net amount for the income year is the excess mentioned in paragraph 104 ‑ 107C(a): (a) in a case where that AMIT cost base net amount exceeds the cost of the asset—reduce the cost of the asset to nil; or (b) otherwise—reduce the cost of the asset by that AMIT cost base net amount. Note: If the AMIT cost base net amount exceeds the cost of the asset, see section 104 ‑ 107H. (4) If the * CGT asset’s * AMIT cost base net amount for the income year is the shortfall mentioned in paragraph 104 ‑ 107C(b), increase the cost of the asset by that AMIT cost base net amount. (5) The time of the reduction or increase is: (a) unless paragraph (b) applies—just before the end of the income year; or (b) if a * CGT event happens to the * CGT asset at a time when you hold it before the end of the income year—just before the time of that CGT event. (6) For the purposes of this section and section 104 ‑ 107H, in working out the * CGT asset’s * AMIT cost base net amount for the income year, disregard any right that you start to have in the income year if: (a) the right is for you to receive any money or any property from the trustee of the * AMIT; and (b) the right is remuneration or consideration for you providing finance, services, goods or property to the trustee of the AMIT or to another person. (7) For the purposes of section 118 ‑ 20, treat this section as being outside of this Part. Note: Section 118 ‑ 20 deals with reducing capital gains if an amount is otherwise assessable.

Amendment history: Inserted by No 53 of 2016, effective Sch 1 (item 1), Sch 2, Sch 3 (items 2–4), Sch 4 (items 1–5), Sch 5 (items 2, 29–67, 75), Sch 6 (items 21–34), Sch 8 (item 1) and Sch 9: 5 May 2016 (s 2(1) items 2, 4)

s 104-107H — Effect of AMIT cost base net amount on cost of AMIT membership interest or unit that is a revenue asset—amount included in assessable income

(1) Subsection (2) applies if: (a) paragraph 104 ‑ 107G(3)(a) applies in respect of the * CGT asset’s * AMIT cost base net amount for the income year; and (b) that AMIT cost base net amount exceeds the cost of the * CGT asset just before the time mentioned in subsection 104 ‑ 107G(5). (2) Include in your assessable income for the income year in which that time occurs: (a) if the cost of the * CGT asset was nil just before that time—the cost reduction amount; or (b) otherwise—the excess mentioned in paragraph (1)(b). (3) Subsection (2) applies despite subsection 104 ‑ 107F(3). (4) For the purposes of section 118 ‑ 20, treat this section as being outside of this Part. Note: Section 118 ‑ 20 deals with reducing capital gains if an amount is otherwise assessable.

Amendment history: Inserted by No 53 of 2016, effective Sch 1 (item 1), Sch 2, Sch 3 (items 2–4), Sch 4 (items 1–5), Sch 5 (items 2, 29–67, 75), Sch 6 (items 21–34), Sch 8 (item 1) and Sch 9: 5 May 2016 (s 2(1) items 2, 4)

s 104-110 — Granting a lease: CGT event F1

(1) CGT event F1 happens if a lessor grants, renews or extends a lease. Note 1: Other CGT events can apply to leases. An assignment of a lease is an example of CGT event A1. Note 2: There are special rules that apply to some lease transactions: see Division 132. (2) The time of the event is: (a) for the grant of a lease: (i) when the contract for the lease is entered into; or (ii) if there is no contract—at the start of the lease; or (b) for a renewal or extension—at the start of the renewal or extension. (3) The lessor makes a capital gain if the * capital proceeds from the grant, renewal or extension are more than the expenditure it incurred on the grant, renewal or extension. It makes a capital loss if those capital proceeds are less . (4) The expenditure can include giving property: see section 103 ‑ 5. However, it does not include an amount you have received as * recoupment of it and that is not included in your assessable income, or an amount to the extent that you have deducted or can deduct it. Exception (5) The lessor can choose to apply section 104 ‑ 115 to certain long term leases. If it does so, this section does not apply.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 104-115 — Granting a long ‑ term lease: CGT event F2

(1) CGT event F2 happens if: (a) a lessor grants a lease over land (whether or not the lessor owns an estate in fee simple in the land), or renews or extends a lease over land; and (b) the lease, renewal or extension is for at least 50 years and: (i) at the time of the grant, renewal or extension, it was reasonable to expect that it would continue for at least 50 years; and (ii) the terms of the lease, renewal or extension as they apply to the lessee are substantially the same as those under which the lessor owned the land or held a lease of the land; and (c) the lessor chooses to apply this section instead of section 104 ‑ 110. Note: Section 103 ‑ 25 tells you when the choice must be made. (2) The time of the event is when the lessor grants the lease, or at the start of the renewal or extension, as appropriate. (3) The lessor makes a capital gain if the * capital proceeds from the event are more than the * cost base of the lessor’s interest in the land. The lessor makes a capital loss if those capital proceeds are less than the * reduced cost base of that interest. Exceptions (4) A * capital gain or * capital loss the lessor makes is disregarded if: (a) it * acquired the * CGT asset that is the land, or the lease to the lessor was granted, before 20 September 1985; or (b) the lease to the lessor has been renewed or extended and the last renewal or extension started before that day. Note: For any later CGT event that happens to the land or the lessor’s lease of it: see section 132 ‑ 10.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 94 of 1999, effective 16 July 1999 (s 2(1)–(3)) | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 104-120 — Lessor pays lessee to get lease changed: CGT event F3

(1) CGT event F3 happens if a lessor incurs expenditure in getting the lessee’s agreement to vary or waive a term of the lease. The lessor makes a capital loss equal to the amount of expenditure it incurred. (The expenditure can include giving property: see section 103 ‑ 5.) (2) The time of the event is when the term is varied or waived. Exception (3) However, this event does not apply to expenditure for a lease to which the lessor has chosen to apply section 104 ‑ 115.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 104-125 — Lessee receives payment for changing lease: CGT event F4

(1) CGT event F4 happens if a lessee receives a payment from the lessor for agreeing to vary or waive a term of the lease. The payment can include giving property: see section 103 ‑ 5. (2) The time of the event is when the term is varied or waived. (3) The lessee makes a capital gain if the * capital proceeds from the event are more than the lease’s * cost base (at the time of the event). If the lessee makes a * capital gain, the lease’s cost base is also reduced to nil. Note: The lessee cannot make a capital loss. (4) On the other hand, if those * capital proceeds are less , the lease’s * cost base is reduced by that amount at the time of the event. Example: On 1 January 1999 a lessee enters a lease. On 1 May 1999 the lessee agrees to waive a term. The lessor pays the lessee $1,000 for this. If the lease’s cost base at the time of the waiver is $2,500, it is reduced from $2,500 to $1,500. On 1 September 1999 the lessee agrees to waive another term. The lessor pays the lessee $2,000 for this. If the lease’s cost base at the time of the waiver is $1,500, the lessee makes a capital gain of $500, and the cost base is reduced to nil. Exceptions (5) A * capital gain the lessee makes is disregarded if: (a) the lease was granted before 20 September 1985; or (b) for a lease that has been renewed or extended—the start of the last renewal or extension occurred before that day.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 104-130 — Lessor receives payment for changing lease: CGT event F5

(1) CGT event F5 happens if a lessor receives a payment from the lessee for agreeing to vary or waive a term of the lease. The payment can include giving property: see section 103 ‑ 5. (2) The time of the event is when the term is varied or waived. (3) The lessor makes a capital gain if the * capital proceeds from the event are more than the expenditure the lessor incurs in relation to the variation or waiver. The lessor makes a capital loss if those capital proceeds are less . Example: You own a shopping centre. The lessee of a shop in the centre pays you $10,000 for agreeing to change the terms of its lease. You incur expenses of $1,000 for a solicitor and $500 for a valuer. You make a capital gain of $8,500. (4) The expenditure can include giving property: see section 103 ‑ 5. However, it does not include an amount you have received as * recoupment of it and that is not included in your assessable income. Exceptions (5) A * capital gain or * capital loss the lessor makes is disregarded if: (a) the lease was granted before 20 September 1985; or (b) for a lease that has been renewed or extended—the start of the last renewal or extension occurred before that day.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 104-135 — Capital payment for shares: CGT event G1

(1) CGT event G1 happens if: (a) a company makes a payment to you in respect of a * share you own in the company (except for * CGT event A1 or C2 happening in relation to the share); and (b) some or all of the payment (the non ‑ assessable part ) is not a * dividend, or an amount that is taken to be a dividend under section 47 of the Income Tax Assessment Act 1936 ; and (c) the payment is not included in your assessable income. The payment can include giving property: see section 103 ‑ 5. (1A) In working out the non ‑ assessable part, disregard any part of the payment that is: (aa) * non ‑ assessable non ‑ exempt income; or (a) repaid by you; or (b) compensation you paid that can reasonably be regarded as a repayment of all or part of the payment; or (c) an amount referred to in section 152 ‑ 125 (which exempts a payment of a small business 15 ‑ year exemption amount) as an exempt amount. The payment can include giving property: see section 103 ‑ 5. (1B) However, the non ‑ assessable part is not reduced by any part of the payment that you can deduct. (2) The time of the event is when the company makes the payment. (3) You make a capital gain if the amount of the non ‑ assessable part is more than the * share’s * cost base. If you make a * capital gain, the share’s * cost base and * reduced cost base are reduced to nil. Note 1: You cannot make a capital loss. Note 2: A capital gain under former section 160ZL of the Income Tax Assessment Act 1936 is also taken into account for the purposes of this subsection: see section 104 ‑ 135 of the Income Tax (Transitional Provisions) Act 1997 . (4) However, if the amount of the non ‑ assessable part is not more than the * share’s * cost base, that cost base and its * reduced cost base are reduced by the amount of the non ‑ assessable part. Note: Cost base adjustments are made only under Subdivision 125 ‑ B if there is a roll ‑ over under that Subdivision for CGT event G1 happening as a result of a demerger. Exceptions (5) A * capital gain you make is disregarded if you * acquired the * CGT asset that is the * share before 20 September 1985. (6) You disregard a payment by a liquidator for the purposes of this section if the company ceases to exist within 18 months of the payment. Note: The payment will be part of your capital proceeds for CGT event C2 happening when the share ends. (7) You also disregard a payment that is * personal services income included in your assessable income, or another entity’s assessable income, under section 86 ‑ 15.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 86 of 2000, effective Sch 1 (items 1–26): 30 June 2000 (s 2(1)) | Amended by No 114 of 2000, effective Schedule 4 (items 43, 44): 1 July 1998 Remainder: Royal Assent | Amended by No 173 of 2000, effective s 4, Sch 1, Sch 3 (items 1–15, 17), Sch 4 (items 6–45, 47–49, 51–59, 65(1), (3)) and Sch 6: 21 Dec 2000 (s 2(1)) Sch 4 (items 46, 50): 1 July 1998 (s 2(3)) Sch 5: 31 May 2000 (s 2(4)) | Amended by No 90 of 2002, effective s 4, Sch 1–6, 12, Sch 14 (items 1–15, 17–19), Sch 15 (items 1, 3–15, 19–89) and Sch 16 (items 1, 21–55): 24 Oct 2002 (s 2(1) items 1, 2, 4, 5) Sch 13: 29 June 2002 (s 2(1) item 3) | Amended by No 41 of 2005, effective s. 4, Schedule 1 (items 1–11), Schedule 2 (items 1–9, 11), Schedule 3 (items 17–22), Schedule 6 (items 1–3, 5, 12–15, 17–28), Schedule 7, Schedule 10 (items 36–221, 271–273) and Schedule 11 (items 4, 5): Royal Assent Sch 10 (item 247): 28 Dec 2002 (s 2(1) item 9) Sch 10 (items 248, 259, 260): 24 Oct 2002 (s 2(1) items 10, 14, 15) Sch 10 (items 249, 250–257, 263, 264): 29 June 2002 (s 2(1) items 11, 12, 17) Sch 10 (item 258): 30 June 2000 (s 2(1) item 13) Sch 10 (items 261, 262): 1 July 2000 (s 2(1) item 16) | Amended by No 101 of 2006, effective Schedules 3 and 4: 1 Jan 2008 Remainder: Royal Assent | Amended by No 55 of 2007, effective 12 Apr 2007 | Amended by No 91 of 2008, effective Schedule 1: Royal Assent

s 104-145 — Liquidator or administrator declares shares or financial instruments worthless: CGT event G3

(1) CGT event G3 happens if you own * shares in a company, or financial instruments issued by or created by or in relation to a company, and a liquidator or administrator of the company declares in writing that the liquidator or administrator has reasonable grounds to believe (as at the time of the declaration) that: (a) for shares—there is no likelihood that shareholders in the company, or shareholders of the relevant class of shares, will receive any further distribution for their shares; or (b) for financial instruments—the instruments, or a class of instruments that includes instruments of that kind, have no value or have only negligible value. (2) The time of the event is when the declaration was made. (3) Examples of financial instruments referred to in subsection (1) are: (a) * debentures, bonds or promissory notes issued by the company; and (b) loans to the company; and (c) futures contracts, forward contracts or currency swap contracts relating to the company; and (d) rights or options to acquire an asset referred to in a preceding paragraph of this subsection; and (e) rights or options to acquire * shares in the company. (4) You can choose to make a capital loss equal to the * reduced cost base of your * shares or financial instruments (as at the time of the declaration). (5) If you make the choice, the * cost base and * reduced cost base of the * shares or financial instruments are reduced to nil just after the declaration was made. Note: This is for the purpose of working out if you make a capital gain or loss from any later CGT event in relation to the shares or financial instruments. Exceptions (6) You cannot choose to make a * capital loss if: (a) you * acquired the shares or financial instruments before 20 September 1985; or (b) the shares or financial instruments were * revenue assets at the time when the declaration was made. (7) You cannot choose to make a * capital loss for a * share, or a right to acquire a beneficial interest in a share, if: (a) you acquired the beneficial interest (the ESS interest ) in the share or right under an * employee share scheme; and (b) subsequent to an amount being included in your assessable income under Division 83A (about employee share schemes) in relation to the ESS interest, section 83A ‑ 310 (about forfeiture) applies in relation to ESS interest.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Repealed and substituted by No 23 of 2005, effective s. 4, Schedule 1 (items 2–8, 11, 13–19, 21–24, 26, 27, 29–32), Schedule 2 (items 1–11, 14), Schedule 3 (items 1–13, 75–102, 111(1)–(3)), Schedules 4–6, 8, 10 and Schedule 12 (items 2–6, 11(1)): Royal Assent Schedule 12 (item 1): 1 July 2000 | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent

s 104-150 — Forfeiture of deposit: CGT event H1

(1) CGT event H1 happens if a deposit paid to you is forfeited because a prospective sale or other transaction does not proceed. The payment can include giving property: see section 103 ‑ 5. Example: You decide to sell land. Before entering into a contract of sale, the prospective purchaser pays you a 2 month holding deposit of $1,000. The negotiations fail and the deposit is forfeited. (1A) The amount of the deposit is reduced by any part of the deposit that is: (a) repaid by you; or (b) compensation you paid that can reasonably be regarded as a repayment of all or part of the deposit. The payment can include giving property: see section 103 ‑ 5. (1B) However, the deposit is not reduced by any part of the payment that you can deduct. (2) The time of the event is when the deposit is forfeited. (3) You make a capital gain if the deposit is more than the expenditure you incur in connection with the prospective sale or other transaction. You make a capital loss if the deposit is less . (4) The expenditure can include giving property: see section 103 ‑ 5. However, it does not include an amount you have received as * recoupment of it and that is not included in your assessable income. Example: To continue the example: if you gave a lawyer wine worth $400 in connection with the prospective sale, you make a capital gain of:

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 173 of 2000, effective s 4, Sch 1, Sch 3 (items 1–15, 17), Sch 4 (items 6–45, 47–49, 51–59, 65(1), (3)) and Sch 6: 21 Dec 2000 (s 2(1)) Sch 4 (items 46, 50): 1 July 1998 (s 2(3)) Sch 5: 31 May 2000 (s 2(4))

s 104-155 — Receipt for event relating to a CGT asset: CGT event H2

(1) CGT event H2 happens if: (a) an act, transaction or event occurs in relation to a * CGT asset that you own; and (b) the act, transaction or event does not result in an adjustment being made to the asset’s * cost base or * reduced cost base. Example: You own land on which you intend to construct a manufacturing facility. A business promotion organisation pays you $50,000 as an inducement to start construction early. No contractual rights or obligations are created by the arrangement. The payment is made because of an event (the inducement to start construction early) in relation to your land. Note: This event does not apply if any other CGT event applies: see section 102 ‑ 25. (2) The time of the event is when the act, transaction or event occurs. (3) You make a capital gain if the * capital proceeds because of the * CGT event are more than the * incidental costs you incurred that relate to the event. You make a capital loss if those capital proceeds are less . (4) The costs can include giving property: see section 103 ‑ 5. However, they do not include an amount you have received as * recoupment of them and that is not included in your assessable income. Exceptions (5) CGT event H2 does not happen if: (a) the act, transaction or event is the borrowing of money or the obtaining of credit from another entity; or (b) the act, transaction or event requires you to do something that is another * CGT event that happens to you; or (c) a company issues or allots * equity interests or * non ‑ equity shares in the company; or (d) the trustee of a unit trust issues units in the trust; or (e) a company grants an option to acquire equity interests, non ‑ equity shares or * debentures in the company; or (ea) a company grants an option to dispose of * shares in the company to the company; or (f) the trustee of a unit trust grants an option to acquire units or debentures in the trust; or (g) a company or a trust that is a member of a * demerger group issues new * ownership interests under a * demerger. Note: For demergers, see Division 125.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 94 of 1999, effective 16 July 1999 (s 2(1)–(3)) | Amended by No 114 of 2000, effective Schedule 4 (items 43, 44): 1 July 1998 Remainder: Royal Assent | Amended by No 163 of 2001, effective 1 July 2001 | Amended by No 90 of 2002, effective s 4, Sch 1–6, 12, Sch 14 (items 1–15, 17–19), Sch 15 (items 1, 3–15, 19–89) and Sch 16 (items 1, 21–55): 24 Oct 2002 (s 2(1) items 1, 2, 4, 5) Sch 13: 29 June 2002 (s 2(1) item 3) | Amended by No 162 of 2005, effective Schedule 2 (items 1–13), Schedule 3 (items 1–3, 16–19, 33) and Schedule 6 (items 28–32): Royal Assent Schedule 6 (items 1–5, 7–13): 1 July 2005 Sch 6 (items 6, 16–25): 1 July 2001 (s 2(1) items 4, 6) | Amended by No 91 of 2008, effective Schedule 1: Royal Assent | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 104-160 — Individual or company stops being an Australian resident: CGT event I1

(1) CGT event I1 happens if you stop being an Australian resident. (2) The time of the event is when you stop being one. (3) You need to work out if you have made a * capital gain or a * capital loss for each * CGT asset that you owned just before the time of the event, except one that is * taxable Australian property: (a) covered by item 1 or 3 of the table in section 855 ‑ 15; or (b) covered by item 4 of that table because it is an option or right to * acquire a * CGT asset covered by item 1 or 3 of that table. (4) You make a capital gain if the * market value of the asset (at the time of the event) is more than its * cost base. You make a capital loss if that market value is less than the asset’s * reduced cost base. (4A) If the asset is an * indirect Australian real property interest, or an option or right to acquire such an interest, this Part and Part 3 ‑ 3 apply to the asset as if the first element of the * cost base and * reduced cost base of the asset (just after the time of the event) were its * market value at the time of the event. (4B) Subsection (4A) does not apply if the * capital gain or * capital loss you make is disregarded under subsection (5) or (6), or subsection 104 ‑ 165(2). Exceptions (5) A * capital gain or * capital loss you make is disregarded if you * acquired the asset before 20 September 1985.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9)) | Amended by No 41 of 2005, effective s. 4, Schedule 1 (items 1–11), Schedule 2 (items 1–9, 11), Schedule 3 (items 17–22), Schedule 6 (items 1–3, 5, 12–15, 17–28), Schedule 7, Schedule 10 (items 36–221, 271–273) and Schedule 11 (items 4, 5): Royal Assent Sch 10 (item 247): 28 Dec 2002 (s 2(1) item 9) Sch 10 (items 248, 259, 260): 24 Oct 2002 (s 2(1) items 10, 14, 15) Sch 10 (items 249, 250–257, 263, 264): 29 June 2002 (s 2(1) items 11, 12, 17) Sch 10 (item 258): 30 June 2000 (s 2(1) item 13) Sch 10 (items 261, 262): 1 July 2000 (s 2(1) item 16) | Amended by No 64 of 2005, effective Schedule 2: 27 June 2005 Schedule 5: 29 June 2004 Remainder: Royal Assent | Amended by No 32 of 2006, effective 6 Apr 2006 | Amended by No 168 of 2006, effective Schedule 3 (items 3–5): 13 Dec 2005 Remainder: Royal Assent | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent

s 104-165 — Exception for individuals

Choosing to disregard making a gain or loss (2) If you are an individual, you can choose to disregard making a * capital gain or a * capital loss from all * CGT assets covered by * CGT event I1. (3) If you do so choose, each of those assets is taken to be * taxable Australian property until the earlier of: (a) a * CGT event happening in relation to the asset, if the CGT event involves you ceasing to own the asset; (b) you again becoming an Australian resident. Note: If you are an individual who was in Australia on 6 April 2006, and you remain an Australian resident from that day until you stop being one, and you were an Australian resident for less than 5 years during the 10 years before you stopped being one, see section 104 ‑ 166 of the Income Tax (Transitional Provisions) Act 1997 .

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 41 of 2005, effective s. 4, Schedule 1 (items 1–11), Schedule 2 (items 1–9, 11), Schedule 3 (items 17–22), Schedule 6 (items 1–3, 5, 12–15, 17–28), Schedule 7, Schedule 10 (items 36–221, 271–273) and Schedule 11 (items 4, 5): Royal Assent Sch 10 (item 247): 28 Dec 2002 (s 2(1) item 9) Sch 10 (items 248, 259, 260): 24 Oct 2002 (s 2(1) items 10, 14, 15) Sch 10 (items 249, 250–257, 263, 264): 29 June 2002 (s 2(1) items 11, 12, 17) Sch 10 (item 258): 30 June 2000 (s 2(1) item 13) Sch 10 (items 261, 262): 1 July 2000 (s 2(1) item 16) | Amended by No 32 of 2006, effective 6 Apr 2006 | Amended by No 168 of 2006, effective Schedule 3 (items 3–5): 13 Dec 2005 Remainder: Royal Assent

s 104-170 — Trust stops being a resident trust: CGT event I2

(1) CGT event I2 happens if a trust stops being a * resident trust for CGT purposes. (2) The time of the event is when the trust stops being one. (3) The trustee needs to work out if it has made a * capital gain or a * capital loss for each * CGT asset that it owned (in the capacity as trustee of the trust) just before the time of the event except one that is * taxable Australian property: (a) covered by item 1 or 3 of the table in section 855 ‑ 15; or (b) covered by item 4 of that table because it is an option or right to * acquire a * CGT asset covered by item 1 or 3 of that table. (4) The trustee makes a capital gain if the * market value of the asset (at the time of the event) is more than the asset’s * cost base. The trustee makes a capital loss if that market value is less than the asset’s * reduced cost base. (4A) If the asset is an * indirect Australian real property interest, or an option or right to acquire such an interest, this Part and Part 3 ‑ 3 apply to the asset as if the first element of the * cost base and * reduced cost base of the asset (just after the time of the event) were its * market value at the time of the event. (4B) Subsection (4A) does not apply if the * capital gain or * capital loss the trustee makes is disregarded under subsection (5). Exception (5) A * capital gain or * capital loss the trustee makes is disregarded if it * acquired the asset before 20 September 1985.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9)) | Amended by No 168 of 2006, effective Schedule 3 (items 3–5): 13 Dec 2005 Remainder: Royal Assent

s 104-175 — Company ceasing to be member of wholly ‑ owned group after roll ‑ over: CGT event J1

(1) CGT event J1 happens if: (a) there is a roll ‑ over under Subdivision 126 ‑ B for a * CGT event (the roll ‑ over event ) that happens in relation to a * CGT asset (the roll ‑ over asset ) involving 2 companies that are members of the same * wholly ‑ owned group; and (b) the company (the recipient company ) that owns the roll ‑ over asset just after the roll ‑ over stops being a 100% subsidiary of a company in the group in the circumstances set out in subsection (2) or (3); and (c) at the time of the roll ‑ over, the recipient company was a * 100% subsidiary of: (i) the other company involved in the roll ‑ over event (the originating company ); or (ii) another member of the same * wholly ‑ owned group. Note: If the roll ‑ over was under former section 160ZZO of the Income Tax Assessment Act 1936 , CGT event J1 does not happen if there would not have been a deemed disposal and re ‑ acquisition under that Act: see section 104 ‑ 175 of the Income Tax (Transitional Provisions) Act 1997 . (2) This condition applies if there has been only one roll ‑ over within the * wholly ‑ owned group under Subdivision 126 ‑ B involving the roll ‑ over asset. The recipient company must stop, at a time (the break ‑ up time ) when it still owns the roll ‑ over asset, being a * 100% subsidiary of a member of the group (the ultimate holding company ) that is not a 100% subsidiary of any other member of the group at the time of the roll ‑ over event. (3) This condition applies if the roll ‑ over event was the last in a series of * CGT events involving the roll ‑ over asset and there was a roll ‑ over within the * wholly ‑ owned group under Subdivision 126 ‑ B for all the events. The recipient company must stop, at a time (also the break ‑ up time ) when it still owns the roll ‑ over asset, being a * 100% subsidiary of another member of the group (also the ultimate holding company ) that was not a 100% subsidiary of any other member of the group at the time of the first of the events. (4) The time of the event is the break ‑ up time. (5) The recipient company makes a capital gain if the roll ‑ over asset’s * market value (at the break ‑ up time) is more than its * cost base. It makes a capital loss if that market value is less than its * reduced cost base. Exceptions (6) CGT event J1 does not happen if the conditions in section 104 ‑ 180 or 104 ‑ 182 are satisfied. (7) A * capital gain or * capital loss the recipient company makes is disregarded if the roll ‑ over asset is taken to have been * acquired by it before 20 September 1985 under Subdivision 126 ‑ B (except where the roll ‑ over asset has stopped being a * pre ‑ CGT asset, for example, because of Division 149). Note: CGT event J1 does not happen to a demerged entity or a member of a demerger group if CGT event A1 or C2 happens to a demerging entity under a demerger: see section 125 ‑ 160. Acquisition rule (8) The recipient company is taken to have * acquired the roll ‑ over asset at the break ‑ up time. Cost base adjustment (9) The first element of the recipient company’s * cost base and * reduced cost base of the roll ‑ over asset (just after the break ‑ up time) is its * market value (at the break ‑ up time).

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9)) | Amended by No 173 of 2000, effective s 4, Sch 1, Sch 3 (items 1–15, 17), Sch 4 (items 6–45, 47–49, 51–59, 65(1), (3)) and Sch 6: 21 Dec 2000 (s 2(1)) Sch 4 (items 46, 50): 1 July 1998 (s 2(3)) Sch 5: 31 May 2000 (s 2(4)) | Amended by No 68 of 2002, effective 24 Oct 2002 ( see s. 2) | Amended by No 90 of 2002, effective s 4, Sch 1–6, 12, Sch 14 (items 1–15, 17–19), Sch 15 (items 1, 3–15, 19–89) and Sch 16 (items 1, 21–55): 24 Oct 2002 (s 2(1) items 1, 2, 4, 5) Sch 13: 29 June 2002 (s 2(1) item 3) | Amended by No 101 of 2006, effective Schedules 3 and 4: 1 Jan 2008 Remainder: Royal Assent

s 104-180 — Sub ‑ group break ‑ up

(1) The condition in subsection (2) must have been satisfied at each time when there is a roll ‑ over within the * wholly ‑ owned group under Subdivision 126 ‑ B for a * CGT event happening in relation to the roll ‑ over asset. (2) The originating company and the recipient company must have been members of a group of 2 or more companies (the sub ‑ group ) within the * wholly ‑ owned group (excluding the ultimate holding company) for which one of these is satisfied: (a) if the sub ‑ group consists of 2 companies, either the recipient company is a 100% subsidiary of the other company (the holding company ), or the other company is a 100% subsidiary of the recipient company (also the holding company ); (b) if the sub ‑ group consists of 3 or more companies: (i) the recipient company is a 100% subsidiary of one of those other companies (also the holding company ) and so are the other companies (except the holding company) in the sub ‑ group; or (ii) each of the companies in the sub ‑ group (except the recipient company) is a 100% subsidiary of the recipient company (also the holding company ). (3) If the roll ‑ over event was the last in a series of * CGT events involving the roll ‑ over asset and there was a roll ‑ over within the * wholly ‑ owned group under Subdivision 126 ‑ B for all the events, each company that was the originating company or the recipient company for the purposes of that Subdivision for one of those roll ‑ overs must have been members of the sub ‑ group at the time of each of the roll ‑ overs. (4) The conditions in subsection (5) or (6) must be satisfied just after the break ‑ up time. (5) If the recipient company was the holding company of the sub ‑ group, none of its * shares can be owned by: (a) the ultimate holding company; or (b) a company that is a * 100% subsidiary of the ultimate holding company just after the break ‑ up time. (6) If the recipient company was not the holding company of the sub ‑ group, no * shares in it or in the holding company can be owned by: (a) the ultimate holding company; or (b) a company that is a * 100% subsidiary of the ultimate holding company just after the break ‑ up time.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 104-182 — Consolidated group break ‑ up

* CGT event J1 does not happen if the recipient company ceases to be a * subsidiary member of a * consolidated group at the break ‑ up time (whether or not it becomes a subsidiary member of another consolidated group at that time).

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s. 2)

s 104-185 — Change in relation to replacement asset or improved asset after a roll ‑ over under Subdivision 152 ‑ E: CGT event J2

(1) CGT event J2 happens if you choose a small business roll ‑ over under Subdivision 152 ‑ E for a * CGT event that happens in relation to a * CGT asset in an income year and: (a) you * acquire a replacement asset (the replacement asset ), or you incur * fourth element expenditure in relation to a CGT asset (also the replacement asset ), or you do both, by the end of the * replacement asset period; and (b) the replacement asset is your * active asset at the end of the replacement asset period; and (c) if the replacement asset is a * share in a company or an interest in a trust, at the end of the replacement asset period: (i) either you, or an entity * connected with you, is a * CGT concession stakeholder in the company or trust; or (ii) CGT concession stakeholders in the company or trust have a * small business participation percentage in you of at least 90%; and (d) a change of a kind specified in subsection (2) or (3) happens after the end of the replacement asset period. Note 1: The replacement asset period may be modified or extended, see section 104 ‑ 190. Note 2: There is an exception: see subsection (8). Note 3: There may be 2 or more replacement assets. Note 4: CGT event J2 can also happen in relation to a capital gain you rolled ‑ over under Division 17A of former Part IIIA of the Income Tax Assessment Act 1936 or Division 123 of the Income Tax Assessment Act 1997 if the status of the replacement asset changes: see section 104 ‑ 185 of the Income Tax (Transitional Provisions) Act 1997 . (2) For any replacement asset that satisfied paragraph (1)(b) and, if applicable, paragraph (1)(c), the change is: (a) the asset stops being your * active asset; or (b) the asset becomes your * trading stock; or (d) you start to use the asset solely to produce your * exempt income or * non ‑ assessable non ‑ exempt income. (3) In addition, for a * share in a company or an interest in a trust, the change is: (a) * CGT event G3 or I1 happens in relation to it; or (b) paragraph (1)(c) stops being satisfied. Note: The full list of CGT events is in section 104 ‑ 5. (4) The time of the event is when the change happens. (5) You make a capital gain equal to: (a) if there is only one replacement asset that satisfied paragraph (1)(b) and, if applicable, paragraph (1)(c)—the amount of the capital gain that you disregarded under Subdivision 152 ‑ E (the 152 ‑ E amount ); or (b) if there are 2 or more replacement assets that satisfied paragraph (1)(b) and, if applicable, paragraph (1)(c) and a change of a kind specified in subsection (2) or (3) occurs for all of them—the 152 ‑ E amount; or (c) if there are 2 or more replacement assets that satisfied paragraph (1)(b) and, if applicable, paragraph (1)(c) and such a change occurs for one or more but not all of them—so much (if any) of the 152 ‑ E amount as exceeds the sum of the following: (i) the first element of the * cost base of each of those replacement assets * acquired; (ii) the * incidental costs you incurred to acquire each of those replacement assets (which can include giving property, see section 103 ‑ 5); (iii) the amount of * fourth element expenditure incurred in relation to each of those replacement assets; in relation to which such a change did not occur. (6) If * CGT event J6 has happened in relation to the small business roll ‑ over under Subdivision 152 ‑ E, subsection (5) applies to the 152 ‑ E amount reduced by the amount of the capital gain under that event. (7) If * CGT event J2 happens again in a later income year in relation to the small business roll ‑ over under Subdivision 152 ‑ E, subsection (5) applies to any remaining part of the 152 ‑ E amount reduced by the amount of the capital gain under the earlier event. (8) CGT event J2 does not happen because of paragraph (2)(a) for a * share in a company or an interest in a trust if the share or interest ceased to be an * active asset only because of changes in the * market values of assets that were owned by the company or trust when you * acquired the share or interest or incurred the * fourth element expenditure. (9) You incur fourth element expenditure in relation to a * CGT asset if you incur capital expenditure that is included, under subsection 110 ‑ 25(5), in the fourth element of the * cost base of the asset.

Amendment history: Inserted by No 94 of 1999, effective 16 July 1999 (s 2(1)–(3)) | Amended by No 165 of 1999, effective s 4, Sch 1 (items 1–53, 61, 62), Sch 2, Sch 3 (items 1–4, 18) and Sch 4: 10 Dec 1999 (s 2(1), (2)) | Amended by No 173 of 2000, effective s 4, Sch 1, Sch 3 (items 1–15, 17), Sch 4 (items 6–45, 47–49, 51–59, 65(1), (3)) and Sch 6: 21 Dec 2000 (s 2(1)) Sch 4 (items 46, 50): 1 July 1998 (s 2(3)) Sch 5: 31 May 2000 (s 2(4)) | Amended by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A) | Amended by No 101 of 2003, effective s. 4, Schedule 1 (items 2–20, 22), Schedule 2 (items 1–12), Schedule 3 (items 2–6) and Schedule 6 (items 16, 22–25, 27, 28, 30): Royal Assent s. 5: 11 Oct 2002 Sch 6 (items 17–19): 1 July 1997 (s 2(1) items 17, 18) Sch 6 (items 20, 21): 21 Dec 2000 (s 2(1) items 19, 20) Sch 6 (item 26): 10 Dec 1999 (s 2(1) item 22) Sch 6 (item 29): 30 June 2000 (s 2(1) item 25) | Amended by No 101 of 2006, effective Schedules 3 and 4: 1 Jan 2008 Remainder: Royal Assent | Repealed and substituted by No 55 of 2007, effective 12 Apr 2007 | Amended by No 12 of 2012, effective s 4, Sch 2 (items 1–23), Sch 5 and Sch 6 (items 3–6, 11–20, 25, 26, 35–67, 74–83, 94–96, 117–142, 157–178, 183, 200–203, 214–217, 235–240, 248): 21 Mar 2012 (s 2(1) items 1, 3, 5, 6, 10, 14, 18, 19, 27, 31) Sch 6 (item 7): 1 July 2007 (s 2(1) item 7) Sch 6 (item 10): 1 July 2010 (s 2(1) item 9) Sch 6 (items 106–116): 22 Mar 2012 (s 2(1) items 16, 17) Sch 6 (item 143): 22 Jan 2013 (s 2(1) item 20) Sch 6 (items 146–148): never commenced (s 2(1) item 23) Sch 6 (items 179, 181): 3 Oct 2008 (s 2(1) items 28, 30) Sch 6 (item 180): 3 June 2010 (s 2(1) item 29) | Amended by No 10 of 2016, effective Sch 1 (items 1–32, 38, 39) and Sch 2 (items 3–9, 30): 26 Feb 2016 (s 2(1) items 2, 4)

s 104-190 — Replacement asset period

(1A) If you choose a small business roll ‑ over under Subdivision 152 ‑ E for a * CGT event that happens in relation to a * CGT asset in an income year, the replacement asset period is the period: (a) starting one year before the last CGT event in the income year for which you obtain the roll ‑ over; and (b) ending at the later of: (i) 2 years after that last CGT event; and (ii) if the first ‑ mentioned CGT event happened because you * disposed of the CGT asset—6 months after the latest time a possible * financial benefit becomes or could become due under a * look ‑ through earnout right relating to the CGT asset and the disposal. (1) The replacement asset period is modified if your * capital proceeds for the * CGT event are increased under subsection 116 ‑ 45(2) or 116 ‑ 60(3) after the end of that period. Instead, you have until 12 months after you receive those additional proceeds to * acquire a replacement asset, or incur * fourth element expenditure in relation to a * CGT asset, or do both. Note: Section 116 ‑ 45 applies if you do not receive your capital proceeds despite having taken all reasonable steps to get them, and section 116 ‑ 60 applies if your capital proceeds are misappropriated by your employee or agent. (2) The Commissioner may extend the replacement asset period , or that period as modified by subsection (1).

Amendment history: Inserted by No 94 of 1999, effective 16 July 1999 (s 2(1)–(3)) | Amended by No 165 of 1999, effective s 4, Sch 1 (items 1–53, 61, 62), Sch 2, Sch 3 (items 1–4, 18) and Sch 4: 10 Dec 1999 (s 2(1), (2)) | Amended by No 173 of 2000, effective s 4, Sch 1, Sch 3 (items 1–15, 17), Sch 4 (items 6–45, 47–49, 51–59, 65(1), (3)) and Sch 6: 21 Dec 2000 (s 2(1)) Sch 4 (items 46, 50): 1 July 1998 (s 2(3)) Sch 5: 31 May 2000 (s 2(4)) | Amended by No 101 of 2003, effective s. 4, Schedule 1 (items 2–20, 22), Schedule 2 (items 1–12), Schedule 3 (items 2–6) and Schedule 6 (items 16, 22–25, 27, 28, 30): Royal Assent s. 5: 11 Oct 2002 Sch 6 (items 17–19): 1 July 1997 (s 2(1) items 17, 18) Sch 6 (items 20, 21): 21 Dec 2000 (s 2(1) items 19, 20) Sch 6 (item 26): 10 Dec 1999 (s 2(1) item 22) Sch 6 (item 29): 30 June 2000 (s 2(1) item 25) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 101 of 2006, effective Schedules 3 and 4: 1 Jan 2008 Remainder: Royal Assent | Repealed and substituted by No 55 of 2007, effective 12 Apr 2007 | Amended by No 38 of 2008, effective Schedule 1, Schedules 3–6, Schedule 7 (items 1–3, 5), Schedule 8 (items 1–11), Schedule 9 (items 2–4), Schedule 10, Schedule 12 and Schedule 13: 24 June 2008 Schedule 8 (items 12–21): 1 July 2012 | Amended by No 10 of 2016, effective Sch 1 (items 1–32, 38, 39) and Sch 2 (items 3–9, 30): 26 Feb 2016 (s 2(1) items 2, 4)

s 104-195 — Trust failing to cease to exist after roll ‑ over under Subdivision 124 ‑ N: CGT event J4

(1) CGT event J4 happens if: (a) there is a roll ‑ over under Subdivision 124 ‑ N for a trust * disposing of a * CGT asset to a company under a trust restructure; and (b) the trust fails to cease to exist: (i) within 6 months after the start of the * trust restructuring period; or (ii) if that is not possible because of circumstances outside the control of the trustee—as soon as practicable after the end of that 6 month period; and (c) the company owns the asset when the failure happens. Example: Circumstances would be outside the control of the trustee if the trustee is involved in litigation concerning the trust and cannot wind up the trust until the litigation is finished. (2) CGT event J4 also happens if: (a) there is a roll ‑ over under Subdivision 124 ‑ N for an entity (the shareholding entity ) receiving a * share in a company in exchange for a unit or interest in a trust under a trust restructure; and (b) the trust fails to cease to exist: (i) within 6 months after the start of the * trust restructuring period; or (ii) if that is not possible because of circumstances outside the control of the trustee—as soon as practicable after the end of that 6 month period; and (c) the shareholding entity owns the share when the failure happens. (3) The time of the event is when the failure to cease to exist happens. (4) The company makes a capital gain if the * CGT asset’s * market value at the time the company * acquired the asset is more than its * cost base at that time. The company makes a capital loss if that market value is less than the asset’s * reduced cost base at that time. (5) This Part and Part 3 ‑ 3 apply to the company from just after the time of the event as if the first element of the * cost base and * reduced cost base of the asset were its * market value at the time the company * acquired the asset. (6) The shareholding entity makes a capital gain if the * share’s * market value at the time the entity * acquired the share is more than its * cost base at that time. The shareholding entity makes a capital loss if that market value is less than the share’s * reduced cost base at that time. (7) This Part and Part 3 ‑ 3 apply to the shareholding entity from just after the time of the event as if the first element of the * cost base and * reduced cost base of the * share were its * market value at the time the entity * acquired the share. Exception (8) This section does not apply to a * CGT asset acquired under a trust restructure that happened before the day on which the Taxation Laws Amendment Act (No. 4) 2002 received the Royal Assent.

Amendment history: Inserted by No 53 of 2002, effective Schedules 3 and 4: 1 July 2002 Remainder: Royal Assent

s 104-197 — Failure to acquire replacement asset and to incur fourth element expenditure after a roll ‑ over under Subdivision 152 ‑ E: CGT event J5

(1) CGT event J5 happens if you choose a small business roll ‑ over under Subdivision 152 ‑ E for a * CGT event that happens in relation to a * CGT asset in an income year and, by the end of the * replacement asset period: (a) you have not * acquired a replacement asset (the replacement asset ), and have not incurred * fourth element expenditure in relation to a CGT asset (also the replacement asset ); or (b) the replacement asset does not satisfy the conditions set out in subsection (2). Note: You do not have to satisfy the basic conditions in Subdivision 152 ‑ A for the gain in relation to CGT event J5 (see subsection 152 ‑ 305(4)). (2) The conditions are: (a) the replacement asset must be your * active asset; and (b) if the replacement asset is a * share in a company or an interest in a trust: (i) you, or an entity * connected with you, must be a * CGT concession stakeholder in the company or trust; or (ii) CGT concession stakeholders in the company or trust must have a * small business participation percentage in you of at least 90%. Example: Joseph owns 50% of the shares in Company A and Company B. He is therefore a CGT concession stakeholder in the companies: see section 152 ‑ 60. The companies are connected with Joseph (see section 328 ‑ 125) because he controls both of them. Company A owns land which it leases to Joseph for use in a business. It sells the land at a profit and buys shares in Company B. Subsection (2) is satisfied for the shares because Joseph is connected with Company A and is a CGT concession stakeholder in Company B. (3) The time of the event is at the end of the * replacement asset period. (4) You make a capital gain equal to the amount of the * capital gain that you disregarded under Subdivision 152 ‑ E. (5) The * replacement asset period may be modified or extended as mentioned in section 104 ‑ 190.

Amendment history: Inserted by No 55 of 2007, effective 12 Apr 2007 | Amended by No 80 of 2007, effective 21 June 2007 | Amended by No 42 of 2009, effective Schedule 1 (items 17–26), Schedule 2 (items 2–16, 19–39, 41–48), Schedule 4 (items 2–12), Schedule 5 (items 1–12, 15) and Schedule 8 (items 1, 2, 5): Royal Assent Sch 2 (item 1): 21 June 2007 (s 2(1) item 3) Schedule 3: 1 July 2009 Schedule 8 (items 3, 4): 1 July 2011 | Amended by No 10 of 2016, effective Sch 1 (items 1–32, 38, 39) and Sch 2 (items 3–9, 30): 26 Feb 2016 (s 2(1) items 2, 4)

s 104-198 — Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gain: CGT event J6

(1) CGT event J6 happens if you choose a small business roll ‑ over under Subdivision 152 ‑ E for a * CGT event that happens in relation to a * CGT asset in an income year and: (a) by the end of the * replacement asset period, you have done either or both of the following: (i) * acquired a replacement asset (the replacement asset ); (ii) incurred * fourth element expenditure in relation to a CGT asset (also the replacement asset ); and (b) at the end of the replacement asset period, the replacement asset is your * active asset; and (c) if the replacement asset is a * share in a company or an interest in a trust, at the end of the replacement asset period: (i) you, or an entity * connected with you, are a * CGT concession stakeholder in the company or trust; or (ii) CGT concession stakeholders in the company or trust have a * small business participation percentage in you of at least 90%; and (d) the total (the amount incurred ) of the following, in relation to each replacement asset that satisfied paragraph (b) and, if applicable, paragraph (c), is less than the amount of the capital gain that you disregarded: (i) the first element of the * cost base; (ii) the * incidental costs you incurred (which can include giving property, see section 103 ‑ 5); (iii) the amount of fourth element expenditure incurred. Note: You do not have to satisfy the basic conditions in Subdivision 152 ‑ A for the gain in relation to CGT event J6 (see subsection 152 ‑ 305(4)). (2) The time of the event is at the end of the * replacement asset period. (3) You make a capital gain equal to the difference between: (a) the amount of the * capital gain that you disregarded under Subdivision 152 ‑ E; and (b) the amount incurred. (4) The * replacement asset period may be modified or extended as mentioned in section 104 ‑ 190.

Amendment history: Inserted by No 55 of 2007, effective 12 Apr 2007 | Amended by No 42 of 2009, effective Schedule 1 (items 17–26), Schedule 2 (items 2–16, 19–39, 41–48), Schedule 4 (items 2–12), Schedule 5 (items 1–12, 15) and Schedule 8 (items 1, 2, 5): Royal Assent Sch 2 (item 1): 21 June 2007 (s 2(1) item 3) Schedule 3: 1 July 2009 Schedule 8 (items 3, 4): 1 July 2011 | Amended by No 10 of 2016, effective Sch 1 (items 1–32, 38, 39) and Sch 2 (items 3–9, 30): 26 Feb 2016 (s 2(1) items 2, 4)

s 104-205 — Incoming international transfer of emissions unit: CGT event K1

(1) CGT event K1 happens if: (a) any of the following conditions is satisfied: (iii) a * Kyoto unit is transferred from your foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011 ) to your Registry account (within the meaning of that Act) or your nominee’s Registry account (within the meaning of that Act); (iv) a Kyoto unit is transferred from your nominee’s foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011 ) to your Registry account (within the meaning of that Act) or your nominee’s Registry account (within the meaning of that Act); (v) an * Australian carbon credit unit is transferred from your foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011 ) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011 ) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011 ); (vi) an * Australian carbon credit unit is transferred from your nominee’s foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011 ) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011 ) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011 ); and (b) as a result of the transfer, you start to * hold the unit as a * registered emissions unit; and (c) just before the transfer, the unit was neither your * trading stock nor your * revenue asset. (2) The time of the event is when you start to * hold the unit as a * registered emissions unit. (3) You make a capital gain if the unit’s * market value (just before you started to * hold the unit as a * registered emissions unit) is more than its * cost base. You make a capital loss if that market value is less than its * reduced cost base.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 173 of 2000, effective s 4, Sch 1, Sch 3 (items 1–15, 17), Sch 4 (items 6–45, 47–49, 51–59, 65(1), (3)) and Sch 6: 21 Dec 2000 (s 2(1)) Sch 4 (items 46, 50): 1 July 1998 (s 2(3)) Sch 5: 31 May 2000 (s 2(4)) | Repealed by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Inserted by No 132 of 2011, effective Sch 2 (items 4–71): 2 Apr 2012 (s 2(1) item 5) Sch 2 (items 74–77): never commenced (s 2(1) item 6 (rep by 83, 2014, Sch 3 item 1)) | Amended by No 83 of 2014, effective Sch 1 (items 156–195, 336): 1 July 2014 (s 2(1) items 2, 3) Sch 3 (items 3–7): 18 July 2014 (s 2(1) item 7)

s 104-210 — Bankrupt pays amount in relation to debt: CGT event K2

(1) CGT event K2 happens if: (a) you made a * net capital loss for an income year that, because of subsection 102 ‑ 5(2), cannot be applied in working out whether you made a * net capital gain for the income year or a later one; and (b) you make a payment in an income year (the payment year ) in respect of a debt that was taken into account in working out the amount of that net capital loss; and (c) ignoring subsection 102 ‑ 5(2), some part of the net capital loss (the denied part ) would have been applied (if you had made sufficient * capital gains) in working out whether you had made a * net capital gain for the payment year. The payment can include giving property: see section 103 ‑ 5. (2) The time of the event is when you make the payment. (3) You make a capital loss equal to the smallest of: (a) the amount you paid; or (b) that part of it that was taken into account in working out the denied part; or (c) the denied part less the sum of * capital losses you made as a result of previous payments you made in respect of the debt that was taken into account in working out the denied part. (4) In calculating that capital loss , disregard any amount you have received as * recoupment of the payment and that is not included in your assessable income.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 101 of 2006, effective Schedules 3 and 4: 1 Jan 2008 Remainder: Royal Assent

s 104-215 — Asset passing to tax ‑ advantaged entity: CGT event K3

(1) CGT event K3 happens if you die and a * CGT asset you owned just before dying * passes to a beneficiary in your estate who (when the asset passes): (a) is an * exempt entity; or (b) is the trustee of a * complying superannuation entity; or (c) is a foreign resident. (2) If the asset passes to a beneficiary who is a foreign resident, CGT event K3 happens only if: (a) you were an Australian resident just before dying; and (b) the asset (in the hands of the beneficiary) is not * taxable Australian property. (3) The time of the event is just before you die. (4) A capital gain is made if the * market value of the asset on the day you died is more than the asset’s * cost base. A capital loss is made if that market value is less than the asset’s * reduced cost base. Note: The trustee of the estate must include in the date of death return any net capital gain for the income year when you died. Exception (5) A * capital gain or * capital loss is disregarded if you * acquired the asset before 20 September 1985. Note: There is also an exception for certain philanthropic testamentary gifts: see section 118 ‑ 60.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9)) | Amended by No 41 of 2005, effective s. 4, Schedule 1 (items 1–11), Schedule 2 (items 1–9, 11), Schedule 3 (items 17–22), Schedule 6 (items 1–3, 5, 12–15, 17–28), Schedule 7, Schedule 10 (items 36–221, 271–273) and Schedule 11 (items 4, 5): Royal Assent Sch 10 (item 247): 28 Dec 2002 (s 2(1) item 9) Sch 10 (items 248, 259, 260): 24 Oct 2002 (s 2(1) items 10, 14, 15) Sch 10 (items 249, 250–257, 263, 264): 29 June 2002 (s 2(1) items 11, 12, 17) Sch 10 (item 258): 30 June 2000 (s 2(1) item 13) Sch 10 (items 261, 262): 1 July 2000 (s 2(1) item 16) | Amended by No 168 of 2006, effective Schedule 3 (items 3–5): 13 Dec 2005 Remainder: Royal Assent

s 104-220 — CGT asset starts being trading stock: CGT event K4

(1) CGT event K4 happens if: (a) you start holding as * trading stock a * CGT asset you already own but do not hold as trading stock; and (b) you elect under paragraph 70 ‑ 30(1)(a) to be treated as having sold the asset for its * market value. Note 1: Paragraph 70 ‑ 30(1)(a) allows you to elect the cost of the asset, or its market value, just before it became trading stock. Note 2: There is an exemption if you elect its cost: see section 118 ‑ 25. (2) The time of the event is when you start. (3) You make a capital gain if the asset’s * market value (just before it became * trading stock) is more than its * cost base. You make a capital loss if that market value is less than its * reduced cost base. Exception (4) A * capital gain or * capital loss you make is disregarded if you * acquired the asset before 20 September 1985.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9)) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20)

s 104-225 — Special collectable losses: CGT event K5

(1) CGT event K5 happens if the requirements in subsections (2), (3) and (4) are satisfied. (2) There is a fall in the * market value of a * collectable of a company or trust. (3) * CGT event A1, C2 or E8 happens to: (a) * shares you own in the company (or in a company that is a member of the same * wholly ‑ owned group); or (b) an interest you have in the trust; and there is no roll ‑ over for that CGT event. (4) As a result of the * capital proceeds from that event being replaced under section 116 ‑ 80: (a) you make a * capital gain that you would not otherwise have made; or (b) you do not make the * capital loss you would otherwise have made; or (c) you make a capital loss that is less than you would otherwise have made. Note: The capital proceeds from that event are replaced with the market value of the shares or the interest in the trust as if the fall in the market value of collectables and personal use assets had not occurred: see section 116 ‑ 80. (5) The time of CGT event K5 is the time of * CGT event A1, C2 or E8. (6) You make a capital loss from a * collectable equal to: • the * market value of the * shares or the interest in the trust (worked out as at the time of * CGT event A1, C2 or E8 as if the fall in market value of the collectable had not occurred); less: • the actual * capital proceeds from CGT event A1, C2 or E8. Example: You own 50% of the shares in a company. You bought them in 1999 for $60,000. The company owns a painting worth $100,000 and another asset worth $20,000. The painting falls in value to $50,000. In 1999 you sell your shares for $35,000 (the actual capital proceeds). You would otherwise make a capital loss of $25,000. However, the actual capital proceeds are replaced with $60,000 (the market value of the shares if the painting had not fallen in value). You do not make a capital loss from selling the shares. You do make a collectable loss equal to: Note: You can subtract capital losses from collectables only from your capital gains from collectables: see section 108 ‑ 10.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9)) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20)

s 104-230 — Pre ‑ CGT shares or trust interest: CGT event K6

(1) CGT event K6 happens if: (a) you own * shares in a company or an interest in a trust you * acquired before 20 September 1985; and (b) * CGT event A1, C2, E1, E2, E3, E5, E6, E7, E8, J1 or K3 happens in relation to the shares or interest; and (c) there is no roll ‑ over for the other CGT event; and (d) the applicable requirement in subsection (2) is satisfied. (2) Just before the other event happened: (a) the * market value of property of the company or trust (that is not its * trading stock) that was * acquired on or after 20 September 1985; or (b) the market value of interests the company or trust owned through interposed companies or trusts in property (except trading stock) that was * acquired on or after 20 September 1985; must be at least 75% of the * net value of the company or trust. (5) The time of CGT event K6 is when the other event happens. (6) You make a * capital gain equal to that part of the * capital proceeds from the * share or interest that is reasonably attributable to the amount by which the * market value of the property referred to in subsection (2) is more than the sum of the * cost bases of that property. Note: You cannot make a capital loss. (7) This section applies to property that a company that is a foreign resident * acquired after 15 August 1989 from another company as if it were acquired before 20 September 1985 if: (a) the other company acquired it before 20 September 1985; and (b) the companies are members of the same * wholly ‑ owned group; and (c) the property is not * taxable Australian property. (8) In working out the * net value of a company or trust for the purposes of subsection (2), disregard: (a) the discharge or release of any liabilities; or (b) the * market value of any * CGT assets acquired; if the discharge or release, or the * acquisition, was done for a purpose that included ensuring that the requirement in subsection (2) would not be satisfied in a particular situation. Exceptions (9) CGT event K6 does not happen if: (a) for a company referred to in subsection (2)—some of its * shares were listed for quotation in the official list of a stock exchange in Australia or a foreign country at the time of the other event and at all times in the period of 5 years before the time of the other event; or (b) for a trust referred to in subsection (2) that is a unit trust—some of its units were so listed, or were ordinarily available to the public for subscription or purchase, at the time of the other event and at all times in that period. (9A) Paragraph (9)(a) applies to a case where: (a) the company referred to in subsection (2) is a * demerged entity; and (b) * shares in the demerged entity do not satisfy the test referred to in that paragraph; and (c) the demerger happened not more than 5 years before the other CGT event happened; as if shares in the demerged entity were listed for quotation in the official list of a stock exchange in Australia or a foreign country at all times when some of the shares in the * head entity of the * demerger group were so listed. Example: Louise owns shares in a company which has been listed for 3 years. The company is the head entity of a demerger group. As part of a demerger, she receives new interests in a demerged entity. The demerged entity then lists in its own right. Since the head entity was listed for only 3 years, the demerged entity must remain listed for 2 years before Louise’s new interests become eligible for the exception from CGT event K6. (9B) Paragraph (9)(b) applies to a case where: (a) the trust referred to in subsection (2) is a * demerged entity and a unit trust; and (b) units in the demerged entity do not satisfy the test referred to in that paragraph; and (c) the demerger happened not more than 5 years before the other CGT event happened; as if units in the demerged entity were listed for quotation in the official list of a stock exchange in Australia or a foreign country, or were ordinarily available to the public for subscription or purchase, at all times when some of the units in the * head entity of the * demerger group were so listed or available. (10) A * capital gain is disregarded for a * share in a company or an interest in a trust to the extent that, had you * acquired it on or after 20 September 1985, you could have chosen a roll ‑ over for the other * CGT event under Subdivision 124 ‑ M (scrip for scrip roll ‑ over). Example: Bill owns a unit in a trust that he acquired before 20 September 1985. He exchanges the unit for a unit in another trust worth $60 and $40 cash. He makes a capital gain of $50 because of CGT event K6. Had the unit been acquired after 20 September 1985, Bill would have been entitled to a partial roll ‑ over of the capital gain under Subdivision 124 ‑ M to the extent that his capital proceeds constituted a replacement unit. Bill can therefore disregard 60 / 100 of the $50 gain ($30). The cost base of Bill’s replacement unit is reduced by this amount. Bill must include the remaining $20 of the CGT event K6 gain in the calculation of his net capital gain or loss for the year. Note: A capital gain or loss made by a demerging entity from CGT event K6 happening as a result of a demerger is also disregarded: see section 125 ‑ 155.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 176 of 1999, effective Sch 3: 1 July 2000 (s 2(9)) | Amended by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 114 of 2000, effective Schedule 4 (items 43, 44): 1 July 1998 Remainder: Royal Assent | Amended by No 90 of 2002, effective s 4, Sch 1–6, 12, Sch 14 (items 1–15, 17–19), Sch 15 (items 1, 3–15, 19–89) and Sch 16 (items 1, 21–55): 24 Oct 2002 (s 2(1) items 1, 2, 4, 5) Sch 13: 29 June 2002 (s 2(1) item 3) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23) | Amended by No 41 of 2005, effective s. 4, Schedule 1 (items 1–11), Schedule 2 (items 1–9, 11), Schedule 3 (items 17–22), Schedule 6 (items 1–3, 5, 12–15, 17–28), Schedule 7, Schedule 10 (items 36–221, 271–273) and Schedule 11 (items 4, 5): Royal Assent Sch 10 (item 247): 28 Dec 2002 (s 2(1) item 9) Sch 10 (items 248, 259, 260): 24 Oct 2002 (s 2(1) items 10, 14, 15) Sch 10 (items 249, 250–257, 263, 264): 29 June 2002 (s 2(1) items 11, 12, 17) Sch 10 (item 258): 30 June 2000 (s 2(1) item 13) Sch 10 (items 261, 262): 1 July 2000 (s 2(1) item 16) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 168 of 2006, effective Schedule 3 (items 3–5): 13 Dec 2005 Remainder: Royal Assent

s 104-235 — Balancing adjustment events for depreciating assets and certain assets used for R&D: CGT event K7

(1) CGT event K7 happens if: (a) a * balancing adjustment event occurs for a * depreciating asset you * held; and (b) at some time when you held the asset, you used it, or had it * installed ready for use, for: (i) a purpose other than a * taxable purpose; or (ii) the purpose to which paragraphs 40 ‑ 27(2)(a) and (b) relate (about second ‑ hand assets in residential property). (1A) However, subsection (1) does not apply if: (a) you are an * R&D entity and you could deduct an amount under section 40 ‑ 25 for the * depreciating asset if the following assumptions were made: (i) despite paragraph 40 ‑ 30(1)(c) and subsection 40 ‑ 30(2), all intangible assets were excluded from the definition of depreciating asset in section 40 ‑ 30; (ii) subsection 40 ‑ 45(2) did not, except in the case of buildings, prevent Division 40 from applying to capital works to which Division 43 applies, or to which Division 43 would apply but for expenditure being incurred, or capital works being started, before a particular day; (iii) you satisfied any relevant requirement for deductibility under Division 40; or (b) there is roll ‑ over relief for the * balancing adjustment event under section 40 ‑ 340 of this Act; or (c) the asset is one for which you or another entity has deducted or can deduct amounts under Subdivision 40 ‑ F or 40 ‑ G. (1AA) Without limiting subsection (1A), if the asset is a vessel for which: (a) you have a * shipping exempt income certificate; or (b) you have at any time had such a certificate; subsection (1) does not apply in relation to the asset to the extent that you are using, or at any time have used, it to produce income that is exempt under section 51 ‑ 100. (1B) CGT event K7 also happens if: (a) you are an * R&D entity; and (b) a * balancing adjustment event occurs for a * depreciating asset you * held; and (c) when you held the asset, you could deduct an amount under section 40 ‑ 25 for the asset if the assumptions set out in paragraph (1A)(a) were made; and (d) at some time when you held the asset: (i) you used it other than for a taxable purpose or for the purpose of conducting * R&D activities for which you were registered under section 27A of the Industry Research and Development Act 1986 ; or (ii) you had it installed ready for use other than for a taxable purpose. Note: For subparagraph (d)(i), disregard any use of the asset for the purpose of carrying on research and development activities (within the meaning of former section 73B of the Income Tax Assessment Act 1936 ): see section 104 ‑ 235 of the Income Tax (Transitional Provisions) Act 1997. (2) The time of * CGT event K7 is when the * balancing adjustment event occurs. (3) Any * capital gain or * capital loss is worked out: (a) under section 104 ‑ 240; or (b) under section 104 ‑ 245 if the * depreciating asset was allocated to a low ‑ value pool. (4) A * capital gain or * capital loss you make is disregarded if: (a) the * depreciating asset covered by subsection (1) or (1B) is a * pre ‑ CGT asset; or (b) you can deduct an amount for the asset under Division 328 (about small business entities) for the income year in which the * balancing adjustment event occurred.

Amendment history: Inserted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 170 of 2001, effective Sch 2 (items 28–44, 51): 12 pm (A.C.T.) 29 Jan 2001 (s 2(2)) Sch 2 (items 69–84, 92): 30 June 2001 (s 2(3)) Sch 3 (items 11–13, 19(1)): 1 Oct 2001 (s 2(1)) | Amended by No 119 of 2002, effective s 4, Sch 1 (items 2–5, 8), Sch 2 and Sch 3 (item 100): 2 Dec 2002 (s 2(1) items 1, 2, 10) Sch 1 (items 6, 7): ( see Sch 10 (item 242) of Act No. 41, 2005) Sch 3 (items 4–78): 30 June 2001 (s 2(1) items 3–8) | Amended by No 80 of 2007, effective 21 June 2007 | Amended by No 93 of 2011, effective Schedule 1, Schedule 3 (items 1–4, 15–42, 54–107) and Schedule 4 (items 1–9): Royal Assent | Amended by No 57 of 2012, effective Schedules 1–3: Royal Assent | Amended by No 126 of 2017, effective Sch 1 and 2: 1 Jan 2018 (s 2(1) item 2)

s 104-240 — Working out capital gain or loss for CGT event K7: general case

(1) You make a capital gain if the * termination value of the * depreciating asset covered by subsection 104 ‑ 235(1) or (1B) is more than its * cost. The amount of the * capital gain is: where: sum of reductions is the sum of: (a) if the * depreciating asset is covered by subsection 104 ‑ 235(1): (i) if subparagraph (ii) does not apply—the reductions in your deductions for the asset under sections 40 ‑ 25 and 40 ‑ 27; or (ii) if there is a reduction of the balancing adjustment amount under section 40 ‑ 291A in relation to the * balancing adjustment event—the amount of that reduction; or (b) if the depreciating asset is covered by subsection 104 ‑ 235(1B)—the reductions that would have been required under section 40 ‑ 25 on the assumption that using the asset for a * taxable purpose included using it for the purpose of conducting * R&D activities for which you were registered under section 27A of the Industry Research and Development Act 1986 . total decline is the decline in value of the * depreciating asset since you started to * hold it. Note 1: This subsection applies in a modified way if you used the asset for the purpose of carrying on research and development activities (within the meaning of former section 73B of the Income Tax Assessment Act 1936 ): see section 104 ‑ 235 of the Income Tax (Transitional Provisions) Act 1997. Note 2: The CGT concepts of cost base and capital proceeds are not relevant for this event. (2) You make a capital loss if the * cost of the * depreciating asset covered by subsection 104 ‑ 235(1) or (1B) is more than its * termination value. The amount of the * capital loss is: where: sum of reductions and total decline have the same meanings as in subsection (1). (3) In applying subsection (1) or (2), reduce the * termination value of the * depreciating asset by so much of an amount misappropriated by your employee or * agent (whether by theft, embezzlement, larceny or otherwise) as represents an amount applicable to you under: (a) item 8 of the table in subsection 40 ‑ 300(2); or (b) item 1, 3, 4 or 6 of the table in subsection 40 ‑ 305(1); in relation to the * balancing adjustment event. (4) If you later receive an amount as * recoupment of all or part of the amount misappropriated, the amount applicable under subsection (3) is increased by the amount received. (5) Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment for the purposes of giving effect to this section for an income year if: (a) you discover the misappropriation, or you receive an amount as * recoupment of all or part of the amount misappropriated, after you lodged your * income tax return for the income year; and (b) the amendment is made at any time during the period of 4 years starting immediately after you discover the misappropriation or receive the amount.

Amendment history: Inserted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 170 of 2001, effective Sch 2 (items 28–44, 51): 12 pm (A.C.T.) 29 Jan 2001 (s 2(2)) Sch 2 (items 69–84, 92): 30 June 2001 (s 2(3)) Sch 3 (items 11–13, 19(1)): 1 Oct 2001 (s 2(1)) | Amended by No 38 of 2008, effective Schedule 1, Schedules 3–6, Schedule 7 (items 1–3, 5), Schedule 8 (items 1–11), Schedule 9 (items 2–4), Schedule 10, Schedule 12 and Schedule 13: 24 June 2008 Schedule 8 (items 12–21): 1 July 2012 | Amended by No 93 of 2011, effective Schedule 1, Schedule 3 (items 1–4, 15–42, 54–107) and Schedule 4 (items 1–9): Royal Assent | Amended by No 126 of 2017, effective Sch 1 and 2: 1 Jan 2018 (s 2(1) item 2) | Amended by No 49 of 2026, effective sch 1 (items 1-51, 54-59, 64-79A, 82-84), sch 3, sch 4 (items 1-17): 1 July 2026 (s 2(1) items 2-4, 6) sch 2 (items 1-5): 27 June 2026 (s 2(1) item 5)

s 104-245 — Working out capital gain or loss for CGT event K7: pooled assets

(1) You make a capital gain if the * depreciating asset’s * termination value is more than its * cost. The amount of the * capital gain is: where: taxable use fraction is the taxable use percentage (expressed as a fraction) that you estimated for the asset when you allocated it to the pool. Note: The CGT concepts of cost base and capital proceeds are not relevant for this event. (2) You make a capital loss if the * depreciating asset’s * cost is more than its * termination value. The amount of the * capital loss is: where: taxable use fraction has the same meaning as in subsection (1). (3) In applying subsection (1) or (2), reduce the * termination value of the * depreciating asset by so much of an amount misappropriated by your employee or * agent (whether by theft, embezzlement, larceny or otherwise) as represents an amount applicable to you under: (a) item 8 of the table in subsection 40 ‑ 300(2); or (b) item 1, 3, 4 or 6 of the table in subsection 40 ‑ 305(1); in relation to the * balancing adjustment event. (4) If you later receive an amount as * recoupment of all or part of the amount misappropriated, the amount applicable under subsection (3) is increased by the amount received. (5) Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment for the purposes of giving effect to this section for an income year if: (a) you discover the misappropriation, or you receive an amount as * recoupment of all or part of the amount misappropriated, after you lodged your * income tax return for the income year; and (b) the amendment is made at any time during the period of 4 years starting immediately after you discover the misappropriation or receive the amount.

Amendment history: Inserted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 38 of 2008, effective Schedule 1, Schedules 3–6, Schedule 7 (items 1–3, 5), Schedule 8 (items 1–11), Schedule 9 (items 2–4), Schedule 10, Schedule 12 and Schedule 13: 24 June 2008 Schedule 8 (items 12–21): 1 July 2012

s 104-250 — Direct value shifts: CGT event K8

(1) CGT event K8 happens if there is a * taxing event generating a gain for a * down interest under section 725 ‑ 245. Note: That section sets out some of the CGT consequences of a direct value shift for affected owners of down interests. See also the rest of Division 725. (2) The time of the event is the * decrease time for the * down interest. (3) You make a capital gain equal to the gain generated for the taxing event. Note: You cannot make a capital loss. (4) If, because of the same * direct value shift, there are 2 or more * taxing events generating a gain that are covered by subsection (1), CGT event K8 happens for each of those taxing events, and you make a separate capital gain for each. Exceptions (5) A * capital gain is disregarded if the * down interest is a * pre ‑ CGT asset.

Amendment history: Inserted by No 90 of 2002, effective s 4, Sch 1–6, 12, Sch 14 (items 1–15, 17–19), Sch 15 (items 1, 3–15, 19–89) and Sch 16 (items 1, 21–55): 24 Oct 2002 (s 2(1) items 1, 2, 4, 5) Sch 13: 29 June 2002 (s 2(1) item 3) | Amended by No 41 of 2005, effective s. 4, Schedule 1 (items 1–11), Schedule 2 (items 1–9, 11), Schedule 3 (items 17–22), Schedule 6 (items 1–3, 5, 12–15, 17–28), Schedule 7, Schedule 10 (items 36–221, 271–273) and Schedule 11 (items 4, 5): Royal Assent Sch 10 (item 247): 28 Dec 2002 (s 2(1) item 9) Sch 10 (items 248, 259, 260): 24 Oct 2002 (s 2(1) items 10, 14, 15) Sch 10 (items 249, 250–257, 263, 264): 29 June 2002 (s 2(1) items 11, 12, 17) Sch 10 (item 258): 30 June 2000 (s 2(1) item 13) Sch 10 (items 261, 262): 1 July 2000 (s 2(1) item 16)

s 104-255 — Carried interests: CGT event K9

(1) CGT event K9 happens if you become entitled to receive a * payment of a * carried interest of a * general partner in a * VCLP, an * ESVCLP or an * AFOF or a * limited partner in a * VCMP. (2) The time of the event is the time you become entitled to receive the * payment. (3) You make a capital gain equal to the * capital proceeds from the * CGT event. Note: You cannot make a capital loss. Meaning of carried interest (4) The carried interest of a * general partner in a * VCLP, an * ESVCLP or an * AFOF is the partner’s entitlement to a distribution from the VCLP, ESVCLP or AFOF, to the extent that the distribution is contingent upon the attainment of profits for the * limited partners in the VCLP, ESVCLP or AFOF. (5) The carried interest of a * limited partner in a * VCMP is the partner’s entitlement to a distribution from the VCMP, to the extent that the distribution is contingent upon the attainment of profits for the * limited partners in the VCLP, ESVCLP or AFOF in which the VCMP is a * general partner. (6) The carried interest does not include: (a) any part of the partner’s entitlement to that distribution that is attributable to a fee (by whatever name called) for the management of the * VCLP, * ESVCLP, * AFOF or * VCMP; or (b) any part of the partner’s entitlement to that distribution that is attributable to the partner’s * equity interest in the VCLP, ESVCLP, AFOF or VCMP. Meaning of payment of carried interest (7) Payment , of a * carried interest, includes: (a) a payment that is attributable to the carried interest; or (b) the giving of property in satisfaction of the carried interest: see section 103 ‑ 5; or (c) the giving of property in satisfaction of an entitlement that is attributable to the carried interest: see section 103 ‑ 5.

Amendment history: Inserted by No 136 of 2002, effective Sch 1 (items 1, 5): 31 May 2000 (s 2(1) items 2, 4) Sch 1 (items 2–4, 6–27), Sch 2 (items 18–28), Sch 3 (items 2–18) and Sch 4 (items 1, 2): 19 Dec 2002 (s 2(1) items 3, 5, 6) | Amended by No 78 of 2007, effective Schedule 7 (items 2–14): 1 July 2005 Schedule 8 (items 350–353): 19 Dec 2002 (s 2(1) item 7) Remainder: Royal Assent | Amended by No 110 of 2014, effective Sch 1 and Sch 2 (items 2–5, 13–23): 17 Oct 2014 (s 2(1) item 2) Sch 3, Sch 4 (items 1, 3) and Sch 5 (items 16–67, 74–76, 84–91, 98–121): 16 Oct 2014 (s 2(1) items 3–5, 7)

s 104-260 — Certain short ‑ term forex realisation gains: CGT event K10

(1) CGT event K10 happens if: (a) you make a * forex realisation gain as a result of forex realisation event 2; and (b) item 1 of the table in subsection 775 ‑ 70(1) applies. (2) The time of the event is when the forex realisation event happens. (3) You make a capital gain equal to the * forex realisation gain. Note: You cannot make a capital loss under CGT event K10. However, if you make a forex realisation loss covered by item 1 of the table in subsection 775 ‑ 75(1), you will make a capital loss under CGT event K11 ( see section 104 ‑ 265).

Amendment history: Inserted by No 133 of 2003, effective 17 Dec 2003

s 104-265 — Certain short ‑ term forex realisation losses: CGT event K11

(1) CGT event K11 happens if: (a) you make a * forex realisation loss as a result of forex realisation event 2; and (b) item 1 of the table in subsection 775 ‑ 75(1) applies. (2) The time of the event is when the forex realisation event happens. (3) You make a capital loss equal to the * forex realisation loss. Note: You cannot make a capital gain under CGT event K11 . However, if you make a forex realisation gain covered by item 1 of the table in subsection 775 ‑ 70(1), you will make a capital gain under CGT event K10 ( see section 104 ‑ 260).

Amendment history: Inserted by No 133 of 2003, effective 17 Dec 2003

s 104-270 — Foreign hybrids: CGT event K12

(1) CGT event K12 happens if, in accordance with paragraph 830 ‑ 50(2)(b) or (3)(b), you make a * capital loss under this section for an income year. (2) The time of the event is just before the end of the income year. (3) You make a capital loss equal to the amount applicable under paragraph 830 ‑ 50(2)(b) or (3)(b).

Amendment history: Inserted by No 101 of 2004, effective s. 4, Schedule 1 (items 2–4), Schedule 9, Schedule 10 (items 7–37) and Schedule 11 (items 144–146): Royal Assent Sch 2 and Sch 7 (items 1–8): 30 June 2003 (s 2(1) items 3, 8) Sch 3: 1 July 2003 (s 2(1) item 4) Sch 11 (item 35): 30 June 2000 (s 2(1) item 13) Sch 11 (items 52–59, 88, 89): 1 July 2000 (s 2(1) item 14) Sch 11 (items 141–143): 1 July 2001 (s 2(1) item 16)

s 104-500 — Loss of pre ‑ CGT status of membership interests in entity becoming subsidiary member: CGT event L1

(1) CGT event L1 happens if, under section 705 ‑ 57 (including in its application in accordance with Subdivisions 705 ‑ B to 705 ‑ E), there is a reduction in the * tax cost setting amount of assets of an entity that becomes a * subsidiary member of a * consolidated group or a * MEC group. (2) The time of the event is just after the entity becomes a * subsidiary member of the group. (3) For the head company core purposes mentioned in subsection 701 ‑ 1(2), the * head company makes a capital loss equal to the reduction . (4) The amount of the capital loss that can be applied to reduce the head company’s * capital gains for the first income year ending after the entity becomes a * subsidiary member of the group (the first income year ) cannot exceed 1 / 5 of the * capital loss . (5) The amount of the * net capital loss from the first income year, to the extent the amount is attributable to the * capital loss (the extent being the event L1 attributable loss ), that can be applied to reduce the head company’s * capital gains for a later income year cannot exceed the amount worked out for the year using the following table: Limit on applying event L1 attributable loss Item For this income year: The amount of the event L1 attributable loss that can be applied cannot exceed: 1 For the second income year ending after the entity became a * subsidiary member The difference between: (a) 2/5 of the * capital loss; and (b) the amount of the capital loss that was applied in accordance with subsection (4) for the first income year. 2 For the third income year ending after the entity became a * subsidiary member The difference between: (a) 3/5 of the * capital loss; and (b) the sum of the amount mentioned in paragraph (b) of item 1 and the amount of the event L1 attributable loss that was applied to reduce the entity’s * capital gains for the next income year after the first income year. 3 For the fourth income year ending after the entity became a * subsidiary member The difference between: (a) 4/5 of the * capital loss; and (b) the sum of the amount mentioned in paragraph (b) of item 1 and the amounts of the event L1 attributable loss that were applied to reduce the entity’s * capital gains for earlier income years ending after the first income year. 4 For the fifth income year ending after the entity became a * subsidiary member, or for any later income year The difference between: (a) the * capital loss; and (b) the sum of the amount mentioned in paragraph (b) of item 1 and the amounts of the event L1 attributable loss that were applied to reduce the entity’s * capital gains for earlier income years ending after the first income year.

Amendment history: Inserted by No 117 of 2002, effective s 4: 2 Dec 2002 (s 2(1) item 1) Sch 1, 2, Sch 3 (items 1–7), Sch 4, Sch 5 (items 1–12), Sch 6–8, Sch 11 (items 8–11), Sch 12 (items 1–23), Sch 13 (items 1–14) and Sch 14 (items 8–13): 24 Oct 2002 (s 2(1) items 2, 3, 5, 6, 9) Sch 17: 29 June 2002 (s 2(1) item 11) | Amended by No 107 of 2003, effective Sch 6: 1 July 2003 (s 2(1) item 3) Sch 7 (items 6–8): 30 June 2003 (s 2(1) item 5) Sch 7 (item 15): 17 Dec 2003 (s 2(1) item 7) Remainder: 21 Oct 2003 (s 2(1) items 1, 2, 4, 6, 8)

s 104-505 — Where pre ‑ formation intra ‑ group roll ‑ over reduction results in negative allocable cost amount: CGT event L2

(1) CGT event L2 happens if: (a) an entity becomes a * subsidiary member of a * consolidated group or a * MEC group; and (b) in working out the group’s * allocable cost amount for the entity, the amount remaining after applying step 3A of the table in section 705 ‑ 60 is negative. (2) The time of the event is just after the entity becomes a * subsidiary member of the group. (3) For the head company core purposes mentioned in subsection 701 ‑ 1(2), the * head company makes a capital gain equal to the amount remaining .

Amendment history: Inserted by No 16 of 2003, effective s 4: 11 Apr 2003 (s 2(1) item 1) Sch 1 (items 1–6, 9–26), Sch 2, 3, Sch 4 (items 1–7), Sch 5 (items 2–5), Sch 6 (items 1–9), Sch 7 (items 1, 2, 4–29), Sch 8, Sch 9 (items 1, 2, 13–21), Sch 10 (item 2), Sch 11 (items 1–3), Sch 12, 13, Sch 14 (items 1–7), Sch 16 (items 1–3), Sch 19 (items 1–3), Sch 21, 22, Sch 23 (items 10–13) and Sch 24 (items 20–23): 24 Oct 2002 (s 2(1) items 1A, 2–11, 13, 14) Sch 7 (item 3): ( see Sch 10 (item 224) of Act No. 41, 2005) Sch 25 (items 1–10), Sch 26 (items 1–4, 8), Sch 27 (items 1–19, 21), Sch 28 (items 1–12, 19), Sch 29 (items 12, 13) and Sch 30 (items 1, 2): 29 June 2002 (s 2(1) items 15–19, 21, 23) | Amended by No 107 of 2003, effective Sch 6: 1 July 2003 (s 2(1) item 3) Sch 7 (items 6–8): 30 June 2003 (s 2(1) item 5) Sch 7 (item 15): 17 Dec 2003 (s 2(1) item 7) Remainder: 21 Oct 2003 (s 2(1) items 1, 2, 4, 6, 8) | Amended by No 56 of 2010, effective s. 4, Schedule 3 (items 2–7, 10(1)–(4)), Schedule 4, Schedule 5 (items 1–3, 3A, 3B, 4–53, 55–72, 78–110, 112–129, 131–136, 141–146, 146A, 147, 148, 148A, 149, 150, 150A–150F, 151–188, 193–220) and Schedule 6 (items 1–11, 19–26, 56, 57, 115, 127–155): 3 June 2010 Schedule 2 (items 2, 4): 4 June 2010 Sch 5 (item 111): 26 Mar 2009 (s 2(1) item 11B)

s 104-510 — Where tax cost setting amounts for retained cost base assets exceeds joining allocable cost amount: CGT event L3

(1) CGT event L3 happens if: (a) an entity becomes a * subsidiary member of a * consolidated group or a * MEC group; and (b) the sum of the * tax cost setting amounts for all * retained cost base assets that are taken into account under paragraph 705 ‑ 35(1)(b) in working out the tax cost setting amount of each reset cost base asset of the entity exceeds the group’s * allocable cost amount for the entity. (2) The time of the event is just after the entity becomes a * subsidiary member of the group. (3) For the head company core purposes mentioned in subsection 701 ‑ 1(2), the * head company makes a capital gain equal to the excess .

Amendment history: Inserted by No 16 of 2003, effective s 4: 11 Apr 2003 (s 2(1) item 1) Sch 1 (items 1–6, 9–26), Sch 2, 3, Sch 4 (items 1–7), Sch 5 (items 2–5), Sch 6 (items 1–9), Sch 7 (items 1, 2, 4–29), Sch 8, Sch 9 (items 1, 2, 13–21), Sch 10 (item 2), Sch 11 (items 1–3), Sch 12, 13, Sch 14 (items 1–7), Sch 16 (items 1–3), Sch 19 (items 1–3), Sch 21, 22, Sch 23 (items 10–13) and Sch 24 (items 20–23): 24 Oct 2002 (s 2(1) items 1A, 2–11, 13, 14) Sch 7 (item 3): ( see Sch 10 (item 224) of Act No. 41, 2005) Sch 25 (items 1–10), Sch 26 (items 1–4, 8), Sch 27 (items 1–19, 21), Sch 28 (items 1–12, 19), Sch 29 (items 12, 13) and Sch 30 (items 1, 2): 29 June 2002 (s 2(1) items 15–19, 21, 23) | Amended by No 67 of 2003, effective Schedule 10 (items 13–16): 14 Oct 2003 ( see s. 2(1)) | Amended by No 107 of 2003, effective Sch 6: 1 July 2003 (s 2(1) item 3) Sch 7 (items 6–8): 30 June 2003 (s 2(1) item 5) Sch 7 (item 15): 17 Dec 2003 (s 2(1) item 7) Remainder: 21 Oct 2003 (s 2(1) items 1, 2, 4, 6, 8) | Amended by No 83 of 2004, effective s 4, Sch 1 (items 116–124), Sch 2 (items 1, 2, 5–8, 10–18, 20–33, 36–50, 52–64, 67–74), Sch 3 (items 4–7), Sch 5 (items 1, 2), Sch 6, Sch 8 (items 9–11), Sch 10 (items 43, 44) and Sch 12: 25 June 2004 (s 2(1) items 1, 12–14, 16, 17, 20, 27, 29, 30) Sch 1 (items 2–79): 30 June 2000 (s 2(1) item 2) Sch 1 (items 85–94): 30 June 2001 (s 2(1) items 3–5) Sch 1 (items 95–99): 24 Oct 2002 (s 2(1) item 6) Sch 1 (item 100): 19 Dec 2002 (s 2(1) item 7) Sch 1 (items 101–104) and Sch 10 (items 23–29, 30–42): 30 June 2003 (s 2(1) items 8, 9, 24–26) Sch 1 (items 105, 106): 17 Dec 2003 (s 2(1) item 10) Sch 10 (items 3–22): 29 June 2002 (s 2(1) item 23)

s 104-515 — Where no reset cost base assets and excess of net allocable cost amount on joining: CGT event L4

(1) CGT event L4 happens if: (a) an entity becomes a * subsidiary member of a * consolidated group or a * MEC group; and (b) in working out the * tax cost setting amount for assets of the entity in accordance with section 705 ‑ 35 (including in its application in accordance with Subdivisions 705 ‑ B to 705 ‑ D), there is an amount that results after applying paragraphs 705 ‑ 35(1)(b) and (c) (including in their application in accordance with those Subdivisions); and Note: Section 705 ‑ 35 is about the tax cost setting amount for reset cost base assets. (c) it is not possible to allocate, in accordance with the latter paragraph, the amount that results because there are no reset cost base assets of the kind mentioned in that paragraph. (2) The time of the event is just after the entity becomes a * subsidiary member of the group. (3) For the head company core purposes mentioned in subsection 701 ‑ 1(2), the * head company makes a capital loss equal to the amount that results .

Amendment history: Inserted by No 16 of 2003, effective s 4: 11 Apr 2003 (s 2(1) item 1) Sch 1 (items 1–6, 9–26), Sch 2, 3, Sch 4 (items 1–7), Sch 5 (items 2–5), Sch 6 (items 1–9), Sch 7 (items 1, 2, 4–29), Sch 8, Sch 9 (items 1, 2, 13–21), Sch 10 (item 2), Sch 11 (items 1–3), Sch 12, 13, Sch 14 (items 1–7), Sch 16 (items 1–3), Sch 19 (items 1–3), Sch 21, 22, Sch 23 (items 10–13) and Sch 24 (items 20–23): 24 Oct 2002 (s 2(1) items 1A, 2–11, 13, 14) Sch 7 (item 3): ( see Sch 10 (item 224) of Act No. 41, 2005) Sch 25 (items 1–10), Sch 26 (items 1–4, 8), Sch 27 (items 1–19, 21), Sch 28 (items 1–12, 19), Sch 29 (items 12, 13) and Sch 30 (items 1, 2): 29 June 2002 (s 2(1) items 15–19, 21, 23) | Amended by No 107 of 2003, effective Sch 6: 1 July 2003 (s 2(1) item 3) Sch 7 (items 6–8): 30 June 2003 (s 2(1) item 5) Sch 7 (item 15): 17 Dec 2003 (s 2(1) item 7) Remainder: 21 Oct 2003 (s 2(1) items 1, 2, 4, 6, 8)

s 104-520 — Where amount remaining after step 4 of leaving allocable cost amount is negative: CGT event L5

(1) CGT event L5 happens if: (a) an entity ceases to be a * subsidiary member of a * consolidated group or a * MEC group; and (b) in working out the group’s * allocable cost amount for the entity, the amount remaining after applying step 4 of the table in section 711 ‑ 20 is negative. (2) The time of the event is when the entity ceases to be a * subsidiary member of the group. (3) For the head company core purposes mentioned in subsection 701 ‑ 1(2), the * head company makes a capital gain equal to the amount remaining . Note: The amount remaining may be reduced under section 707 ‑ 415.

Amendment history: Inserted by No 16 of 2003, effective s 4: 11 Apr 2003 (s 2(1) item 1) Sch 1 (items 1–6, 9–26), Sch 2, 3, Sch 4 (items 1–7), Sch 5 (items 2–5), Sch 6 (items 1–9), Sch 7 (items 1, 2, 4–29), Sch 8, Sch 9 (items 1, 2, 13–21), Sch 10 (item 2), Sch 11 (items 1–3), Sch 12, 13, Sch 14 (items 1–7), Sch 16 (items 1–3), Sch 19 (items 1–3), Sch 21, 22, Sch 23 (items 10–13) and Sch 24 (items 20–23): 24 Oct 2002 (s 2(1) items 1A, 2–11, 13, 14) Sch 7 (item 3): ( see Sch 10 (item 224) of Act No. 41, 2005) Sch 25 (items 1–10), Sch 26 (items 1–4, 8), Sch 27 (items 1–19, 21), Sch 28 (items 1–12, 19), Sch 29 (items 12, 13) and Sch 30 (items 1, 2): 29 June 2002 (s 2(1) items 15–19, 21, 23) | Amended by No 107 of 2003, effective Sch 6: 1 July 2003 (s 2(1) item 3) Sch 7 (items 6–8): 30 June 2003 (s 2(1) item 5) Sch 7 (item 15): 17 Dec 2003 (s 2(1) item 7) Remainder: 21 Oct 2003 (s 2(1) items 1, 2, 4, 6, 8) | Amended by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 104-525 — Error in calculation of tax cost setting amount for joining entity’s assets: CGT event L6

(1) CGT event L6 happens if: (a) you are the * head company of a * consolidated group or a * MEC group; and (b) the conditions in section 705 ‑ 315 (about errors in tax cost setting amounts) are satisfied for a * subsidiary member of the group; and (c) you have a * net overstated amount or a * net understated amount for the subsidiary member. (2) The time of the event is the start of the income year in which the Commissioner becomes aware of the errors. (3) You work out whether you have a net overstated amount or net understated amount using this table: Meaning of net overstated amount and net understated amount Item In this situation: There is this result: 1 There are one or more overstated amounts under section 705 ‑ 315 for the * subsidiary member but no understated amount under that section for the subsidiary member There is a net overstated amount . It is the overstated amount, or the sum of the overstated amounts. 2 There are one or more understated amounts under section 705 ‑ 315 for the * subsidiary member but no overstated amount under that section for the subsidiary member There is a net understated amount . It is the understated amount, or the sum of the understated amounts. 3 There are both one or more overstated amounts and one or more understated amounts under section 705 ‑ 315 for the * subsidiary member and the sum of the overstated amounts exceeds the sum of the understated amounts There is a net overstated amount . It is the difference between those sums 4 There are both one or more overstated amounts and one or more understated amounts under section 705 ‑ 315 for the * subsidiary member and the sum of the overstated amounts is less than the sum of the understated amounts There is a net understated amount . It is the difference between those sums (4) If the time when the Commissioner becomes aware of the errors is within the period within which the Commissioner may amend all of the assessments necessary to correct the errors, then, for the head company core purposes mentioned in subsection 701 ‑ 1(2): (a) if you have a * net overstated amount—you make a capital gain equal to that amount; or (b) if you have a * net understated amount—you make a capital loss equal to that amount. (5) If the time when the Commissioner becomes aware of the errors is not within that period, then, for the head company core purposes mentioned in subsection 701 ‑ 1(2): (a) if you have a * net overstated amount—you make a capital gain of the amount worked out under subsection (6); or (b) if you have a * net understated amount—you make a capital loss of the amount worked out under subsection (6). (6) The amount of the * capital gain or * capital loss is worked out as follows: where: current asset setting amount means the * tax cost setting amount for all assets referred to in subsection 705 ‑ 315(2) as reset cost base assets that the * head company of the * consolidated group or the * MEC group held continuously from the time when the * subsidiary member joined the group until the start of the head company’s income year that is the earliest income year for which the Commissioner could amend the head company’s assessment to correct any of the errors. original asset setting amount means the * tax cost setting amount for all assets referred to in subsection 705 ‑ 315(2) as reset cost base assets that the * subsidiary member held at the time it joined the group. stated amount means the * net overstated amount or the * net understated amount, as the case requires.

Amendment history: Inserted by No 16 of 2003, effective s 4: 11 Apr 2003 (s 2(1) item 1) Sch 1 (items 1–6, 9–26), Sch 2, 3, Sch 4 (items 1–7), Sch 5 (items 2–5), Sch 6 (items 1–9), Sch 7 (items 1, 2, 4–29), Sch 8, Sch 9 (items 1, 2, 13–21), Sch 10 (item 2), Sch 11 (items 1–3), Sch 12, 13, Sch 14 (items 1–7), Sch 16 (items 1–3), Sch 19 (items 1–3), Sch 21, 22, Sch 23 (items 10–13) and Sch 24 (items 20–23): 24 Oct 2002 (s 2(1) items 1A, 2–11, 13, 14) Sch 7 (item 3): ( see Sch 10 (item 224) of Act No. 41, 2005) Sch 25 (items 1–10), Sch 26 (items 1–4, 8), Sch 27 (items 1–19, 21), Sch 28 (items 1–12, 19), Sch 29 (items 12, 13) and Sch 30 (items 1, 2): 29 June 2002 (s 2(1) items 15–19, 21, 23) | Amended by No 107 of 2003, effective Sch 6: 1 July 2003 (s 2(1) item 3) Sch 7 (items 6–8): 30 June 2003 (s 2(1) item 5) Sch 7 (item 15): 17 Dec 2003 (s 2(1) item 7) Remainder: 21 Oct 2003 (s 2(1) items 1, 2, 4, 6, 8)

s 104-535 — Where reduction in tax cost setting amounts for reset cost base assets cannot be allocated: CGT event L8

(1) CGT event L8 happens if: (a) an entity becomes a * subsidiary member of a * consolidated group or a * MEC group; and (b) the * tax cost setting amount for a reset cost base asset of the entity is reduced under subsection 705 ‑ 40(1) (including in its application in accordance with Subdivisions 705 ‑ B to 705 ‑ D); and (c) some or all (the unallocated amount ) of the reduction cannot be allocated as mentioned in subsection 705 ‑ 40(2). (2) The time of the event is just after the entity becomes a * subsidiary member of the group. (3) For the head company core purposes mentioned in subsection 701 ‑ 1(2), the * head company makes a capital loss equal to the unallocated amount.

Amendment history: Inserted by No 107 of 2003, effective Sch 6: 1 July 2003 (s 2(1) item 3) Sch 7 (items 6–8): 30 June 2003 (s 2(1) item 5) Sch 7 (item 15): 17 Dec 2003 (s 2(1) item 7) Remainder: 21 Oct 2003 (s 2(1) items 1, 2, 4, 6, 8)

s 106-1 — What this Division is about

This Division sets out the cases where a capital gain or loss is made by someone other than the entity to which a CGT event happens. The entities affected are: • partnerships (Subdivision 106 ‑ A); • bankruptcy trustees and company liquidators (Subdivision 106 ‑ B); • trustees where there is an absolutely entitled beneficiary (Subdivision 106 ‑ C); • security holders (Subdivision 106 ‑ D).

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 106-5 — Partnerships

(1) Any * capital gain or * capital loss from a * CGT event happening in relation to a partnership or one of its * CGT assets is made by the partners individually. Each partner’s gain or loss is calculated by reference to the partnership agreement, or partnership law if there is no agreement. Example 1: A partnership creates contractual rights in another entity (CGT event D1). Each partner’s capital gain or loss is calculated by allocating an appropriate share of the capital proceeds from the event and the incidental costs that relate to the event (according to the partnership agreement, or partnership law if there is no agreement). Example 2: Helen and Clare set up a business in partnership. Helen contributes a block of land to the partnership capital. Their partnership agreement recognises that Helen has a 75% interest in the land and Clare 25%. The agreement is silent as to their interests in other assets and profit sharing. When the land is sold, Helen’s capital gain or loss will be determined on the basis of her 75% interest. For other partnership assets, Helen’s gain or loss will be determined on the basis of her 50% interest (under the relevant Partnership Act). (2) Each partner has a separate * cost base and * reduced cost base for the partner’s interest in each * CGT asset of the partnership. (3) If a partner leaves a partnership, a remaining partner * acquires a separate * CGT asset to the extent that the remaining partner acquires a share of the departing partner’s interest in a partnership asset. Note: The remaining partners would not be affected if the departing partner sells its interests to an entity that was not a partner. Example: (Indexation is ignored for the purpose of this example). John, Wil and Patricia form a partnership (in equal shares). John contributes a building (which is a pre ‑ 20 September 1985 asset) having a market value of $200,000. Wil and Patricia contribute $200,000 each in cash. The partnership buys another asset for $400,000. John is taken to have disposed of 2 / 3 of his interest in the building ( 1 / 3 to Wil and 1 / 3 to Patricia). His remaining 1 / 3 share in the building remains a pre ‑ CGT asset. The 1 / 3 shares that Wil and Patricia acquire are post ‑ CGT assets. Wil retires from the partnership when the partnership assets have a market value of $1,200,000 ($500,000 for the building and $700,000 for the other asset). John and Patricia pay Wil $400,000 for his interest in the partnership. Wil has a capital gain of $100,000 on the building and $100,000 on the other asset. John and Patricia each acquire an additional 1 / 6 interest in the partnership assets. These additional interests are separate assets and post ‑ CGT assets. (4) If a new partner is admitted to a partnership: (a) the new partner * acquires a share (according to the partnership agreement, or partnership law if there is no agreement) of each partnership asset; and (b) the existing partners are treated as having * disposed of part of their interest in each partnership asset to the extent that the new partner has acquired it. Example: (Indexation is ignored for the purpose of this example). Lyn and Barry form a partnership, each contributing $15,000 to its capital. The partnership buys land for $30,000. The land increases in value to $300,000. Andrew is admitted as an equal partner, paying Lyn and Barry $50,000 each to acquire a 1 / 3 share in the land. His cost base is $100,000. Lyn and Barry have each disposed of 1 / 3 of their interest in the land. Each has a cost base for that interest of $5,000, and capital proceeds of $50,000, leaving them with a capital gain of $45,000 each on Andrew’s admission to the partnership. The land is sold for its market value. Andrew has no capital gain on the land. Lyn and Barry have disposed of their remaining 2 / 3 original interest in the land for capital proceeds of $100,000, leaving each of them with a capital gain of:

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 119 of 2002, effective s 4, Sch 1 (items 2–5, 8), Sch 2 and Sch 3 (item 100): 2 Dec 2002 (s 2(1) items 1, 2, 10) Sch 1 (items 6, 7): ( see Sch 10 (item 242) of Act No. 41, 2005) Sch 3 (items 4–78): 30 June 2001 (s 2(1) items 3–8)

s 106-30 — Effect of bankruptcy

(1) For the purposes of this Part and Part 3 ‑ 3 (about capital gains and losses) and Subdivision 328 ‑ C (What is a small business entity), the vesting of the individual’s * CGT assets in the trustee under the Bankruptcy Act 1966 or under a similar foreign law is ignored. (2) This Part, Part 3 ‑ 3 and Subdivision 328 ‑ C apply to an act done in relation to a * CGT asset of an individual in these circumstances as if the act had been done by the individual (instead of by the trustee etc.): (a) as a result of the bankruptcy of the individual by the Official Trustee in Bankruptcy or a registered trustee, or the holder of a similar office under a * foreign law; (b) by a trustee under a personal insolvency agreement made under Part X of the Bankruptcy Act 1966 , or under a similar instrument under a foreign law; (c) by a trustee as a result of an arrangement with creditors under that Act or a foreign law. Example: A CGT asset of an individual vests in a trustee because of the bankruptcy of the individual. No CGT event happens as a result of the vesting. The trustee later sells the CGT asset. Any capital gain or loss is made by the individual, not the trustee.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 80 of 2004, effective Sch 1 (items 197, 212, 213, 215): 1 Dec 2004 (s 2(1) item 2) | Amended by No 119 of 2013, effective Sch 1: 30 June 2013 (s 2(1) item 2) Remainder: 29 June 2013(s 2(1) items 1, 3, 4)

s 106-35 — Effect of liquidation

(1) For the purposes of this Part and Part 3 ‑ 3 (about capital gains and losses) and Subdivision 328 ‑ C (What is a small business entity), the vesting of a company’s * CGT assets in a liquidator, or the holder of a similar office under a * foreign law, is ignored. (2) This Part, Part 3 ‑ 3 and Subdivision 328 ‑ C apply to an act done by a liquidator of a company, or the holder of a similar office under a * foreign law, as if the act had been done by the company (instead of by the liquidator etc.). Example: Ben, a liquidator of a company, sells a CGT asset of the company. Any capital gain or loss is made by the company, not by Ben.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Repealed and substituted by No 119 of 2013, effective Sch 1: 30 June 2013 (s 2(1) item 2) Remainder: 29 June 2013(s 2(1) items 1, 3, 4)

s 106-50 — Absolutely entitled beneficiaries

(1) For the purposes of this Part and Part 3 ‑ 3 (about capital gains and losses) and Subdivision 328 ‑ C (What is a small business entity), from just after the time you become absolutely entitled to a * CGT asset as against the trustee of a trust (disregarding any legal disability), the asset is treated as being your asset (instead of being an asset of the trust). (2) This Part, Part 3 ‑ 3 and Subdivision 328 ‑ C apply, from just after the time you become absolutely entitled to a * CGT asset as against the trustee of a trust (disregarding any legal disability), to an act done in relation to the asset by the trustee as if the act had been done by you (instead of by the trustee). Example: An individual becomes absolutely entitled to a CGT asset of a trust. The trustee later sells the asset. Any capital gain or loss from the sale is made by the individual, not the trustee.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Repealed and substituted by No 119 of 2013, effective Sch 1: 30 June 2013 (s 2(1) item 2) Remainder: 29 June 2013(s 2(1) items 1, 3, 4)

s 106-60 — Securities, charges and encumbrances

(1) For the purposes of this Part and Part 3 ‑ 3 (about capital gains and losses) and Subdivision 328 ‑ C (What is a small business entity): (a) the vesting of a * CGT asset in an entity is ignored, if: (i) the vesting is for the purpose of enforcing, giving effect to or maintaining a security, charge or encumbrance over the asset; and (ii) the security, charge or encumbrance remains over the asset just after the vesting; and (b) a CGT asset is treated as vesting in an entity at the time a security, charge or encumbrance ceases to be over the asset, if: (i) the entity holds the asset just after that time because the asset vested in the entity at an earlier time; and (ii) that earlier vesting was ignored under paragraph (a) because it was for the purpose of enforcing, giving effect to or maintaining the security, charge or encumbrance. (2) This Part, Part 3 ‑ 3 and Subdivision 328 ‑ C apply to an act done by an entity (or an * agent of the entity) in relation to a * CGT asset for the purpose of enforcing, giving effect to or maintaining a security, charge or encumbrance over the asset as if the act had been done by the entity that provided the security (instead of by the first ‑ mentioned entity or its agent). Example: A CGT asset of a borrower vests in a lender as security for a loan. No CGT event happens as a result of the vesting. If the borrower fails to make payments on the loan and the lender sells the CGT asset under the security arrangement, any capital gain or loss is made by the borrower, not the lender.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Repealed and substituted by No 119 of 2013, effective Sch 1: 30 June 2013 (s 2(1) item 2) Remainder: 29 June 2013(s 2(1) items 1, 3, 4)

s 108-1 — What this Division is about

This Division defines the various categories of assets that are relevant to working out your capital gains and losses. They are CGT assets, collectables and personal use assets. It also tells you how capital losses from collectables and personal use assets are relevant to working out your net capital gain or loss. It also sets out when land, buildings and capital improvements are taken to be separate CGT assets.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 108-5 — CGT assets

(1) A CGT asset is: (a) any kind of property; or (b) a legal or equitable right that is not property. (2) To avoid doubt, these are CGT assets : (a) part of, or an interest in, an asset referred to in subsection (1); (b) goodwill or an interest in it; (c) an interest in an asset of a partnership; (d) an interest in a partnership that is not covered by paragraph (c). Note 1: Examples of CGT assets are: • land and buildings; • shares in a company and units in a unit trust; • options; • debts owed to you; • a right to enforce a contractual obligation; • foreign currency. Note 2: An asset is not a CGT asset if the asset was last acquired before 26 June 1992 and was not an asset for the purposes of former Part IIIA of the Income Tax Assessment Act 1936 : see section 108 ‑ 5 of the Income Tax (Transitional Provisions) Act 1997 .

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 114 of 2000, effective Schedule 4 (items 43, 44): 1 July 1998 Remainder: Royal Assent | Amended by No 101 of 2006, effective Schedules 3 and 4: 1 Jan 2008 Remainder: Royal Assent

s 108-7 — Interest in CGT assets as joint tenants

Individuals who own a * CGT asset as joint tenants are treated as if they each owned a separate CGT asset constituted by an equal interest in the asset and as if each of them held that interest as a tenant in common. Note: Section 128 ‑ 50 contains rules that apply when a joint tenant dies.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 108-10 — Losses from collectables to be offset only against gains from collectables

(1) In working out your * net capital gain or * net capital loss for the income year, * capital losses from * collectables can be used only to reduce * capital gains from collectables. Note: You choose the order in which you reduce your capital gains from collectables by your capital losses from collectables. Example: Your capital gains from collectables total $200 and your capital losses from collectables total $400. You have other capital gains of $500. You have a net capital gain of $500 and a net capital loss from collectables of $200. The losses from collectables cannot be used to reduce the $500 capital gain. (2) A collectable is: (a) * artwork, jewellery, an antique, or a coin or medallion; or (b) a rare folio, manuscript or book; or (c) a postage stamp or first day cover; that is used or kept mainly for your (or your * associate’s) personal use or enjoyment. (3) These are also collectables : (a) an interest in any of the things covered by subsection (2); or (b) a debt that arises from any of those things; or (c) an option or right to * acquire any of those things. Note: Collectables acquired for $500 or less are exempt. However, you get an exemption for an interest in one only if the market value of all the interests combined is $500 or less: see Subdivision 118 ‑ A. (4) If some or all of a * capital loss from a * collectable cannot be applied in an income year, the unapplied amount can be applied in the next income year for which your * capital gains from * collectables exceed your * capital losses (if any) from collectables. Example: You have a capital gain from a collectable for the income year of $200 and a capital loss from another collectable of $600. Your capital loss from one collectable reduces your capital gain from the other to zero. You cannot apply the remaining $400 of the capital loss in this income year, but you can apply it in a later income year. (5) If you have 2 or more unapplied * net capital losses from * collectables, you must apply them in the order you made them.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1))

s 108-15 — Sets of collectables

(1) This section sets out what happens if: (a) you own * collectables that are a set; and (b) they would ordinarily be * disposed of as a set; and (c) you dispose of them in one or more transactions for the purpose of trying to obtain the exemption in section 118 ‑ 10. Example: You buy a set of 3 books for $900. You apportion the $900 among each book: see section 112 ‑ 30. If the books are of equal value, you have acquired each one for $300. If you dispose of each book individually, you would ordinarily obtain the exemption in section 118 ‑ 10, because you acquired each one for less than $500. (2) The set of * collectables is taken to be a single * collectable and each of your * disposals is a disposal of part of that collectable. Example: To continue the example, the 3 books are taken to be a single collectable. You will not obtain the exemption in section 118 ‑ 10, because you acquired the set for more than $500. You work out if you make a capital gain or loss from a disposal of part of an asset by comparing the capital proceeds from it with the cost base or reduced cost base (as appropriate) of the disposed part. Note 1: Section 112 ‑ 30 tells you how to apportion the cost base and reduced cost base of a CGT asset on a disposal of part of an asset. Note 2: This section does not apply to a collectable you last acquired before 16 December 1995: see section 108 ‑ 15 of the Income Tax (Transitional Provisions) Act 1997 .

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 108-17 — Cost base of a collectable

In working out the * cost base of a * collectable, disregard the third element (about costs of ownership).

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 32 of 2006, effective 6 Apr 2006

s 108-20 — Losses from personal use assets must be disregarded

(1) In working out your * net capital gain or * net capital loss for the income year, any * capital loss you make from a * personal use asset is disregarded. (2) A personal use asset is: (a) a * CGT asset (except a * collectable) that is used or kept mainly for your (or your * associate’s) personal use or enjoyment; or (b) an option or right to * acquire a * CGT asset of that kind; or (c) a debt arising from a * CGT event in which the * CGT asset the subject of the event was one covered by paragraph (a); or (d) a debt arising other than: (i) in the course of gaining or producing your assessable income; or (ii) from your carrying on a * business. Note 1: There is an exemption for a personal use asset you acquire for $10,000 or less: see section 118 ‑ 10. Note 2: A debt arising from a CGT event involving a CGT asset kept mainly for your personal use and enjoyment is a personal use asset to prevent any loss arising from the debt being a normal capital loss. (3) A personal use asset does not include land, a * stratum unit or a building or structure that is taken to be a separate * CGT asset because of Subdivision 108 ‑ D.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 108-25 — Sets of personal use assets

(1) This section sets out what happens if: (a) you own * personal use assets that are a set; and (b) they would ordinarily be * disposed of as a set; and (c) you dispose of them in one or more transactions for the purpose of trying to obtain the exemption in section 118 ‑ 10. (2) The set of * personal use assets is taken to be a single * personal use asset and each of your * disposals is a disposal of part of that asset.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 108-30 — Cost base of a personal use asset

In working out the * cost base of a * personal use asset, disregard the third element (about the costs of ownership).

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 32 of 2006, effective 6 Apr 2006

s 108-50 — What this Subdivision is about

For CGT purposes, there are: • exceptions to the common law principle that what is attached to the land is part of the land; and • special rules about buildings and adjacent land; and • rules about when a capital improvement to a CGT asset is treated as a separate CGT asset. Note: In addition to the circumstances set out in this Subdivision, separate asset treatment can apply under section 124 ‑ 595 (about a roll ‑ over for a Crown lease) and section 124 ‑ 725 (about a roll ‑ over for a prospecting or mining entitlement). Table of sections Operative provisions 108 ‑ 55 When is a building a separate asset from land? 108 ‑ 60 Depreciating asset that is part of a building is a separate asset 108 ‑ 65 Land adjacent to land acquired before 20 September 1985 108 ‑ 70 When is a capital improvement a separate asset? 108 ‑ 75 Capital improvements to CGT assets for which a roll ‑ over may be available 108 ‑ 80 Deciding if capital improvements are related to each other 108 ‑ 85 Meaning of improvement threshold

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 173 of 2000, effective s 4, Sch 1, Sch 3 (items 1–15, 17), Sch 4 (items 6–45, 47–49, 51–59, 65(1), (3)) and Sch 6: 21 Dec 2000 (s 2(1)) Sch 4 (items 46, 50): 1 July 1998 (s 2(3)) Sch 5: 31 May 2000 (s 2(4)) | Amended by No 101 of 2004, effective s. 4, Schedule 1 (items 2–4), Schedule 9, Schedule 10 (items 7–37) and Schedule 11 (items 144–146): Royal Assent Sch 2 and Sch 7 (items 1–8): 30 June 2003 (s 2(1) items 3, 8) Sch 3: 1 July 2003 (s 2(1) item 4) Sch 11 (item 35): 30 June 2000 (s 2(1) item 13) Sch 11 (items 52–59, 88, 89): 1 July 2000 (s 2(1) item 14) Sch 11 (items 141–143): 1 July 2001 (s 2(1) item 16) | Amended by No 109 of 2014, effective Sch 10 (items 13–15, 21–48): 17 Oct 2014 (s 2(1) item 8)

s 108-55 — When is a building a separate asset from land?

(1) A building or structure on land that you * acquired on or after 20 September 1985 is taken to be a separate * CGT asset from the land if one of these balancing adjustment provisions applies to the building or structure (whether or not there is a balancing adjustment): (a) Subdivision 40 ‑ D; or (b) section 355 ‑ 315 or 355 ‑ 525 (about R&D). Example: You construct a timber mill building on land you own. The building is subject to a balancing adjustment on its disposal, loss or destruction. It is taken to be a separate CGT asset from the land. (2) A building or structure that is constructed on land that you * acquired before 20 September 1985 is taken to be a separate * CGT asset from the land if: (a) you entered into a contract for the construction on or after that day; or (b) if there is no contract—the construction started on or after that day. Example: You bought a block of land with a building on it on 10 August 1984. On 1 December 1999 you construct another building on the land. The other building is taken to be a separate CGT asset from the land.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 170 of 2001, effective Sch 2 (items 28–44, 51): 12 pm (A.C.T.) 29 Jan 2001 (s 2(2)) Sch 2 (items 69–84, 92): 30 June 2001 (s 2(3)) Sch 3 (items 11–13, 19(1)): 1 Oct 2001 (s 2(1)) | Amended by No 119 of 2002, effective s 4, Sch 1 (items 2–5, 8), Sch 2 and Sch 3 (item 100): 2 Dec 2002 (s 2(1) items 1, 2, 10) Sch 1 (items 6, 7): ( see Sch 10 (item 242) of Act No. 41, 2005) Sch 3 (items 4–78): 30 June 2001 (s 2(1) items 3–8) | Amended by No 93 of 2011, effective Schedule 1, Schedule 3 (items 1–4, 15–42, 54–107) and Schedule 4 (items 1–9): Royal Assent

s 108-60 — Depreciating asset that is part of a building is a separate asset

A * depreciating asset that is part of a building or structure is taken to be a separate * CGT asset from the building or structure. Example: You own a factory from which you carry on a business. You install rest rooms for your employees. The plumbing fixtures and fittings are depreciating assets. These are taken to be a separate CGT asset from the factory.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Repealed and substituted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1))

s 108-65 — Land adjacent to land acquired before 20 September 1985

Land that you * acquire on or after 20 September 1985 that is adjacent to land (the original land ) you acquired before that day is taken to be a separate * CGT asset from the original land if it and the original land are amalgamated into one title. Example: On 1 April 1984 you bought a block of land. On 1 June 1999 you bought another block of land adjacent to the first block. You amalgamate the titles to the 2 blocks into 1 title. The second block is treated as a separate CGT asset. You can make a capital gain or loss from it if you sell the whole area of land.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 108-70 — When is a capital improvement a separate asset?

Improvements to land (1) A capital improvement to land is taken to be a separate * CGT asset from the land if one of the balancing adjustment provisions set out in subsection 108 ‑ 55(1) applies to the improvement (whether or not there is a balancing adjustment). Example: You own land that you use for pastoral operations. You build some fences that are destroyed by fire. The fences are depreciating assets and are subject to a balancing adjustment on their destruction under Division 40. The fences are taken to be a separate CGT asset from the land. Unrelated improvements to pre ‑ CGT assets (2) A capital improvement to a * CGT asset (the original asset ) that you * acquired before 20 September 1985 (that is not related to any other capital improvement to the asset) is taken to be a separate * CGT asset if its * cost base (assuming it were a separate CGT asset) when a CGT event happens (except one that happens because of your death) in relation to the original asset is: (a) more than the * improvement threshold for the income year in which the event happened; and (b) more than 5% of the * capital proceeds from the event. Example: In 1983 you bought a boat. In 1999 you install a new mast (a capital improvement) for $30,000. Later, you sell the boat for $150,000. If the cost base of the improvement in the sale year is $41,000 and the improvement threshold for that year is $96,000, the improvement will not be treated as a separate asset. Note 1: Section 108 ‑ 80 sets out the factors for deciding whether capital improvements are related to each other. Note 2: If the improvement is a separate asset, the capital proceeds from the event must be apportioned between the original asset and the improvement: see section 116 ‑ 40. Related improvements to pre ‑ CGT assets (3) Capital improvements to a * CGT asset (the original asset ) that you * acquired before 20 September 1985 that are related to each other are taken to be a separate * CGT asset if the total of their * cost bases (assuming each one were a separate CGT asset) when a * CGT event happens in relation to the original asset is: (a) more than the * improvement threshold for the income year in which the event happened; and (b) more than 5% of the * capital proceeds from the event. Note: If the improvements are a separate asset, the capital proceeds from the event must be apportioned between the original asset and the improvements: see section 116 ‑ 40. Some improvements not relevant (4) This section does not apply to a capital improvement: (a) that took place under a contract that you entered into before 20 September 1985; or (b) if there is no contract—that started or occurred before that day. (5) Subsections (2) and (3) do not apply if the capital improvement is made to: (a) a * Crown lease; or (b) a * prospecting entitlement or * mining entitlement; or (c) a * statutory licence; or (d) a * depreciating asset to which Subdivision 124 ‑ K applies. Note: Section 108 ‑ 75 deals with this situation. (6) This section does not apply to a capital improvement consisting of repairs to or restoration of a * CGT asset * acquired before 20 September 1985 in circumstances where there is a roll ‑ over under Subdivision 124 ‑ B.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 114 of 2000, effective Schedule 4 (items 43, 44): 1 July 1998 Remainder: Royal Assent | Amended by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1))

s 108-75 — Capital improvements to CGT assets for which a roll ‑ over may be available

(1) This section is relevant only if a * CGT event happens in relation to a * CGT asset that is: (a) a * Crown lease; or (b) a * prospecting entitlement or * mining entitlement; or (c) a * statutory licence; or (d) a * depreciating asset to which Subdivision 124 ‑ K applies. You must have * acquired it before 20 September 1985. Note: Division 124 treats you as having acquired a CGT asset before that day in some situations. (2) There are possible consequences if there has been one or more capital improvements to: (a) the * CGT asset the subject of the * CGT event; or (b) any * CGT assets of the same kind that were in existence before the CGT asset and came to an end where a roll ‑ over was obtained under a provision set out in this table: Roll ‑ over provisions Item For this CGT asset: Roll ‑ over is obtained under this provision: 1 A * Crown lease Subdivision 124 ‑ J 2 A prospecting or mining entitlement Subdivision 124 ‑ L 3 A * statutory licence Subdivision 124 ‑ C or former Subdivision 124 ‑ O 4 A * depreciating asset Subdivision 124 ‑ K Note: Roll ‑ overs under former sections 160ZWA, 160ZZF, 160ZZPE and 160ZWC of the Income Tax Assessment Act 1936 are also relevant: see section 108 ‑ 75 of the Income Tax (Transitional Provisions) Act 1997 . Example: In 1984 you acquired a commercial fishing licence. In 1986 you paid $62,000 to get an extra right (a capital improvement) attached to the licence. In June 1999 the licence expired and you got a new licence. You obtained a roll ‑ over for the old licence expiring. In April 2000 you sold the new fishing licence for $200,000. (3) Any capital improvement that is not related to another capital improvement is taken to be a separate * CGT asset if its * cost base (assuming it were a separate CGT asset) when the * CGT event happens is: (a) more than the * improvement threshold for the income year in which the event happened; and (b) more than 5% of the * capital proceeds from the event. Example: To continue the example, suppose the cost base of the right is $101,000 and the improvement threshold for the 1999 ‑ 2000 income year is $96,000. Since the cost base of the right is more than the improvement threshold and more than 5% of the capital proceeds, the right is taken to be a separate CGT asset. Note 1: Section 108 ‑ 80 sets out the factors for deciding whether capital improvements are related to each other. Note 2: If the improvement is a separate asset, the capital proceeds from the event must be apportioned between the asset and the improvement: see section 116 ‑ 40. (4) Any capital improvements that are related to each other are taken to be a separate * CGT asset if the total of their * cost bases (assuming each one were a separate CGT asset) when the * CGT event happens is: (a) more than the * improvement threshold for the income year in which the event happened; and (b) more than 5% of the * capital proceeds from the event. Note: If the improvements are a separate asset, the capital proceeds from the event must be apportioned between the asset and the improvements: see section 116 ‑ 40. (5) This section does not apply to any capital improvement: (a) that took place under a contract that you entered into before 20 September 1985; or (b) if there is no contract—that started or occurred before that day.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 101 of 2004, effective s. 4, Schedule 1 (items 2–4), Schedule 9, Schedule 10 (items 7–37) and Schedule 11 (items 144–146): Royal Assent Sch 2 and Sch 7 (items 1–8): 30 June 2003 (s 2(1) items 3, 8) Sch 3: 1 July 2003 (s 2(1) item 4) Sch 11 (item 35): 30 June 2000 (s 2(1) item 13) Sch 11 (items 52–59, 88, 89): 1 July 2000 (s 2(1) item 14) Sch 11 (items 141–143): 1 July 2001 (s 2(1) item 16) | Amended by No 101 of 2006, effective Schedules 3 and 4: 1 Jan 2008 Remainder: Royal Assent | Amended by No 109 of 2014, effective Sch 10 (items 13–15, 21–48): 17 Oct 2014 (s 2(1) item 8)

s 108-80 — Deciding if capital improvements are related to each other

In deciding whether capital improvements are related to each other, the factors to be considered include: (a) the nature of the * CGT asset to which the improvements are made; and (b) the nature, location, size, value, quality, composition and utility of each improvement; and (c) whether an improvement depends in a physical, economic, commercial or practical sense on another improvement; and (d) whether the improvements are part of an overall project; and (e) whether the improvements are of the same kind; and (f) whether the improvements are made within a reasonable period of time of each other.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 108-85 — Meaning of improvement threshold

(1) The improvement threshold for the 1997 ‑ 98 income year is $89,992. (2) The * improvement threshold is indexed annually. Note: Subdivision 960 ‑ M shows you how to index amounts. (3) The Commissioner must publish before the beginning of each * financial year the * improvement threshold for that year.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 109-1 — What this Division is about

This Division sets out the ways in which you can acquire a CGT asset and the time of acquisition. The time of acquisition is important for indexation, and for the exemption of assets acquired before 20 September 1985. Generally, you acquire a CGT asset when you become its owner. You can also acquire a CGT asset: • as a result of a CGT event happening: see section 109 ‑ 5; or • in other circumstances: see section 109 ‑ 10. This Division also directs you to special acquisition rules in other Divisions.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 109-5 — General acquisition rules

(1) In general, you acquire a * CGT asset when you become its owner. In this case, the time when you * acquire the asset is when you become its owner. (2) This table sets out specific rules for the circumstances in which, and the time at which, you acquire a * CGT asset as a result of a * CGT event happening. Note: The full list of CGT events is in section 104 ‑ 5. Acquisition rules (CGT events) Event Number In these circumstances: You acquire the asset at this time: A1 (case 1) An entity * disposes of a CGT asset to you (except where you compulsorily acquire it) when the disposal contract is entered into or, if none, when the entity stops being the asset’s owner A1 (case 2) You compulsorily acquire a * CGT asset from another entity the earliest of: (a) when you paid compensation to the entity; or (b) when you became the asset’s owner; or (c) when you entered the asset under the power of compulsory acquisition; or (d) when you took possession of it under that power B1 You enter into an agreement to obtain the use and enjoyment of a * CGT asset when you first obtain the use and enjoyment of the asset (unless title does not pass to you at or before the end of the agreement) D1 An entity creates contractual or other rights in you when the contract is entered into or the right created D2 An entity grants an option to you when the option is granted D3 An entity grants you a right to receive * ordinary income from mining when the contract is entered into or, if none, when the right is granted D4 You enter into a * conservation covenant as a covenantee when the covenant is entered into E1 An entity creates a trust over a * CGT asset and you are the trustee when the trust is created E2 An entity transfers a * CGT asset to a trust and you are the trustee when the asset is transferred E3 A trust over a * CGT asset is converted to a unit trust and you are the trustee when the trust is converted E5 You as beneficiary under a trust become absolutely entitled to a * CGT asset of the trust as against the trustee (disregarding any legal disability) when you become absolutely entitled E6 Trustee * disposes of a * CGT asset of the trust to you to satisfy a right you had to receive * ordinary income from the trust when the * disposal occurs E7 Trustee * disposes of a * CGT asset of the trust to you to satisfy your interest, or part of it, in trust capital when the * disposal occurs E8 Beneficiary under a trust * disposes of its interest, or part of it, in trust capital to you when disposal contract is entered into or, if none, when beneficiary stops being interest’s owner E9 An entity creates a trust over future property and you are the trustee when the entity makes the agreement to create the trust F1 A lessor grants a lease to you, or renews or extends a lease for grant of lease—when the contract is entered into or, if none, at the start of lease; for lease renewal or extension—at the start of renewal or extension F2 A lessor grants a lease to you, or renews or extends a lease, and term is at least 50 years for grant of lease—when lessor grants the lease; for lease renewal or extension—at the start of renewal or extension K3 An individual dies and a * CGT asset of the individual * passes to you (as a tax advantaged entity) when the individual dies K6 A * CGT event happens to * shares or an interest in a trust you own when the other CGT event happens Note 1: For CGT events E1, E2 and E3, if the circumstances specified in the second column of the table happened to an asset before 12 January 1994, there may be no acquisition: see section 109 ‑ 5 of the Income Tax (Transitional Provisions) Act 1997 . Note 2: The acquisition rule for CGT event E9 in the table does not apply to you as trustee if the agreement to create the trust was made before 12 noon on 12 January 1994: see section 109 ‑ 5 of the Income Tax (Transitional Provisions) Act 1997 .

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 114 of 2000, effective Schedule 4 (items 43, 44): 1 July 1998 Remainder: Royal Assent | Amended by No 173 of 2000, effective s 4, Sch 1, Sch 3 (items 1–15, 17), Sch 4 (items 6–45, 47–49, 51–59, 65(1), (3)) and Sch 6: 21 Dec 2000 (s 2(1)) Sch 4 (items 46, 50): 1 July 1998 (s 2(3)) Sch 5: 31 May 2000 (s 2(4)) | Amended by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 167 of 2001, effective Sch 4 (items 8–10) and Sch 7 and 8: 1 Oct 2001 (s 2(1))

s 109-10 — When you acquire a CGT asset without a CGT event

This table sets out some specific rules for the circumstances in which, and the time at which, you acquire a * CGT asset otherwise than as a result of a * CGT event happening. Acquisition rules (no CGT event) Item In these circumstances You acquire the asset at this time: 1 You (or your * agent) construct or create a * CGT asset, and you own it when the construction is finished or the asset is created when the construction, or work that resulted in the creation, started 2 A company issues or allots * equity interests or * non ‑ equity shares in the company to you when contract is entered into or, if none, when equity interests or non ‑ equity shares issued or allotted 3 A trustee of a unit trust issues units in the trust to you when contract is entered into or, if none, when units issued

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 173 of 2000, effective s 4, Sch 1, Sch 3 (items 1–15, 17), Sch 4 (items 6–45, 47–49, 51–59, 65(1), (3)) and Sch 6: 21 Dec 2000 (s 2(1)) Sch 4 (items 46, 50): 1 July 1998 (s 2(3)) Sch 5: 31 May 2000 (s 2(4)) | Amended by No 163 of 2001, effective 1 July 2001 | Amended by No 162 of 2005, effective Schedule 2 (items 1–13), Schedule 3 (items 1–3, 16–19, 33) and Schedule 6 (items 28–32): Royal Assent Schedule 6 (items 1–5, 7–13): 1 July 2005 Sch 6 (items 6, 16–25): 1 July 2001 (s 2(1) items 4, 6) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20)

s 109-50 — Effect of this Subdivision

This Subdivision is a * Guide.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 109-55 — Other acquisition rules

This table sets out other acquisition rules in this Part and Part 3 ‑ 3. Some of the rules have effect only for limited purposes. Other acquisition rules Item In these circumstances You acquire the asset at this time: See: 1 A CGT asset devolves to you as legal personal representative of a deceased individual when the individual died section 128 ‑ 15 2 A CGT asset passes to you as beneficiary in the estate of a deceased individual when the individual died sections 128 ‑ 15 and 128 ‑ 25 3 A surviving joint tenant acquires deceased joint tenant’s interest in a CGT asset when the deceased died section 128 ‑ 50 4 You get only a partial exemption under Subdivision 118 ‑ B for a CGT event happening to a CGT asset that is a dwelling, but you would have got a full exemption if the CGT event had happened just before the first time the dwelling was used for that purpose at that time section 118 ‑ 192 5 The trustee of a deceased estate acquires a dwelling under the deceased’s will for you to occupy, and you obtain an interest in it when the trustee acquired it section 118 ‑ 210 6 You obtain a replacement ‑ asset roll ‑ over for replacing an asset you acquired before 20 September 1985 before 20 September 1985 Divisions 122 and 124 7 You obtain a replacement ‑ asset roll ‑ over for a Crown lease, or a prospecting or mining entitlement that is renewed or replaced and part of the new entitlement relates to a part of the old one that you acquired before 20 September 1985 before 20 September 1985 (for that part of the new entitlement that relates to the pre ‑ CGT part of the old one) sections 124 ‑ 595 and 124 ‑ 725 8 You obtain a same ‑ asset roll ‑ over for a CGT asset the transferor acquired before 20 September 1985 before 20 September 1985 Subdivision 124 ‑ N and Divisions 122 and 126 8A There is a same ‑ asset roll ‑ over for a CGT event that happens to a CGT asset (acquired on or after 20 September 1985) because the trust deed of a fund is changed and you are the fund that owns the asset after the CGT event at the time of the CGT event Subdivision 126 ‑ C 8B There is a same ‑ asset roll ‑ over for a CGT event that happens to a CGT asset when the entity that owned the asset before the roll ‑ over acquired it section 115 ‑ 30 8C You obtain a replacement ‑ asset roll ‑ over (other than a roll ‑ over covered by section 115 ‑ 34) for replacing a CGT asset when you acquired the original asset involved in the roll ‑ over section 115 ‑ 30 8D A CGT asset devolves to you as legal personal representative of a deceased individual when the deceased acquired the asset (unless it was a pre ‑ CGT asset just before his or her death) section 115 ‑ 30 8E A CGT asset passes to you as beneficiary in the estate of a deceased individual when the deceased acquired the asset (unless it was a pre ‑ CGT asset just before his or her death) section 115 ‑ 30 8F A surviving joint tenant acquires a deceased joint tenant’s interest in a CGT asset when the deceased acquired the interest section 115 ‑ 30 8G You hold a membership interest in the receiving trust involved in a roll ‑ over under Subdivision 126 ‑ G when you acquired the corresponding membership interest in the transferring trust involved in the roll ‑ over section 115 ‑ 30 9 A company or trustee of a unit trust issues you with bonus equities and no amount is included in your assessable income if the original equities are post ‑ CGT assets, or are pre ‑ CGT assets and fully paid—when you acquired the original equities; or if the original equities are pre ‑ CGT assets and you had to pay an amount for the bonus equities—when the liability to pay arose section 130 ‑ 20 10 You own shares in a company or units in a unit trust and you exercise rights to acquire new equities in the company or trust for the rights if you acquired them from the company or trustee—when you acquired the original equities; or for the new equities—when you exercise the rights section 130 ‑ 40 11 You acquire shares in a company or units in a unit trust by converting a convertible interest when the conversion of the convertible interest happened section 130 ‑ 60 11A You acquire shares in a company in exchange for the disposal of an exchangeable interest, and the disposal of the exchangeable interest was to: (a) the issuer of the exchangeable interest; or (b) a connected entity of the issuer of the exchangeable interest when the disposal of the exchangeable interest happened section 130 ‑ 105 11B You acquire shares in a company in exchange for the redemption of an exchangeable interest when the redemption of the exchangeable interest happened section 130 ‑ 105 13 You (as a lessee of land) acquire the reversionary interest of the lessor and there is no roll ‑ over for the acquisition if term of lease was for 99 years or more—when the lease was granted or assigned to you; or if term of lease less than 99 years—when the reversionary interest acquired section 132 ‑ 15 14 You acquired a CGT asset before 20 September 1985, and there has since been a change in the majority underlying interests in the asset at the time of the change Division 149 15 You become an Australian resident (but not a temporary resident) and you owned a CGT asset that you acquired on or after 20 September 1985 and that was not * taxable Australian property when you become an Australian resident (but not a temporary resident) section 855 ‑ 45 15A You are a temporary resident, you then cease to be a temporary resident (but remain, at that time, an Australian resident) and you owned a CGT asset that you acquired on or after 20 September 1985 and that was not * taxable Australian property when you cease to be a temporary resident section 768 ‑ 955 16 A trust of which you are trustee becomes a resident trust for CGT purposes and you owned a CGT asset that you acquired on or after 20 September 1985 and that was not * taxable Australian property when the trust becomes a resident trust for CGT purposes section 855 ‑ 50 17 There is a roll ‑ over under Subdivision 126 ‑ B for a CGT event and you are the company owning the roll ‑ over asset just after the roll ‑ over and you stop being a 100% subsidiary of another company in the wholly ‑ owned group when you stop section 104 ‑ 175 Note: Section 115 ‑ 34 sets out other acquisition rules for certain cases involving replacement ‑ asset roll ‑ overs covered by that section.

Amendment history: Inserted by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4)) | Amended by No 63 of 1998, effective Sch 6: 1 July 1998 (s 2(3)(a)) | Amended by No 94 of 1999, effective 16 July 1999 (s 2(1)–(3)) | Amended by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1)) | Amended by No 58 of 2000, effective s 4, Sch 2 (items 2–4(2)), Sch 5, Sch 6 (items 1–13, 17, 18, 20–32, 34), Sch 9 and Sch 10 (items 12–17(3)–(6), 31–38(3)–(7)): 31 May 2000 (s 2(1)) Sch 4: 17 Dec 1999 (s 2(8)) Sch 6 (items 14–16): never commenced (s 2(10)) Sch 6 (item 19): 16 July 1999 (s 2(11)) Sch 8 (item 19): 1 July 1998 (s 2(13)) | Amended by No 114 of 2000, effective Schedule 4 (items 43, 44): 1 July 1998 Remainder: Royal Assent | Amended by No 163 of 2001, effective 1 July 2001 | Amended by No 53 of 2002, effective Schedules 3 and 4: 1 July 2002 Remainder: Royal Assent | Amended by No 101 of 2003, effective s. 4, Schedule 1 (items 2–20, 22), Schedule 2 (items 1–12), Schedule 3 (items 2–6) and Schedule 6 (items 16, 22–25, 27, 28, 30): Royal Assent s. 5: 11 Oct 2002 Sch 6 (items 17–19): 1 July 1997 (s 2(1) items 17, 18) Sch 6 (items 20, 21): 21 Dec 2000 (s 2(1) items 19, 20) Sch 6 (item 26): 10 Dec 1999 (s 2(1) item 22) Sch 6 (item 29): 30 June 2000 (s 2(1) item 25) | Amended by No 133 of 2003, effective 17 Dec 2003 | Amended by No 101 of 2004, effective s. 4, Schedule 1 (items 2–4), Schedule 9, Schedule 10 (items 7–37) and Schedule 11 (items 144–146): Royal Assent Sch 2 and Sch 7 (items 1–8): 30 June 2003 (s 2(1) items 3, 8) Sch 3: 1 July 2003 (s 2(1) item 4) Sch 11 (item 35): 30 June 2000 (s 2(1) item 13) Sch 11 (items 52–59, 88, 89): 1 July 2000 (s 2(1) item 14) Sch 11 (items 141–143): 1 July 2001 (s 2(1) item 16) | Amended by No 41 of 2005, effective s. 4, Schedule 1 (items 1–11), Schedule 2 (items 1–9, 11), Schedule 3 (items 17–22), Schedule 6 (items 1–3, 5, 12–15, 17–28), Schedule 7, Schedule 10 (items 36–221, 271–273) and Schedule 11 (items 4, 5): Royal Assent Sch 10 (item 247): 28 Dec 2002 (s 2(1) item 9) Sch 10 (items 248, 259, 260): 24 Oct 2002 (s 2(1) items 10, 14, 15) Sch 10 (items 249, 250–257, 263, 264): 29 June 2002 (s 2(1) items 11, 12, 17) Sch 10 (item 258): 30 June 2000 (s 2(1) item 13) Sch 10 (items 261, 262): 1 July 2000 (s 2(1) item 16) | Amended by No 32 of 2006, effective 6 Apr 2006 | Amended by No 168 of 2006, effective Schedule 3 (items 3–5): 13 Dec 2005 Remainder: Royal Assent | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent | Amended by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 56 of 2010, effective s. 4, Schedule 3 (items 2–7, 10(1)–(4)), Schedule 4, Schedule 5 (items 1–3, 3A, 3B, 4–53, 55–72, 78–110, 112–129, 131–136, 141–146, 146A, 147, 148, 148A, 149, 150, 150A–150F, 151–188, 193–220) and Schedule 6 (items 1–11, 19–26, 56, 57, 115, 127–155): 3 June 2010 Schedule 2 (items 2, 4): 4 June 2010 Sch 5 (item 111): 26 Mar 2009 (s 2(1) item 11B) | Amended by No 109 of 2014, effective Sch 10 (items 13–15, 21–48): 17 Oct 2014 (s 2(1) item 8)