Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 3/22)
Character Range: 2151427–2154238

net income attributable to the trust's net capital gain as capital gains made by the beneficiary entitled to those parts. This lets the beneficiary reduce those parts by any capital losses and unapplied net capital losses it has.
      If the trust's capital gain was reduced by either the general 50% discount in step 3 of the method statement in subsection 102‑5(1) or by the small business 50% reduction in Subdivision 152‑C (but not both), then the gain is doubled. The beneficiary can then apply its capital losses to the gain before applying the appropriate discount percentage (if any) or the small business 50% reduction.
      If the trust's capital gain was reduced by both the general 50% discount and the small business 50% reduction, then the gain is multiplied by 4. The beneficiary can then apply its capital losses to the gain before applying the appropriate discount percentage (if any) and the small business 50% reduction.
      Division 6E of Part III of the Income Tax Assessment Act 1936 will exclude amounts from the beneficiary's assessable income if necessary to prevent it from being taxed twice on the same parts of the trust's net income.

Table of sections

Operative provisions
115‑210 When this Subdivision applies
115‑215 Assessing presently entitled beneficiaries
115‑220 Assessing trustees under section 98 of the Income Tax Assessment Act 1936
115‑222 Assessing trustees under section 99 or 99A of the Income Tax Assessment Act 1936
115‑225 Attributable gain
115‑227 Share of a capital gain
115‑228 Specifically entitled to an amount of a capital gain
115‑230 Choice for resident trustee to be specifically entitled to capital gain

Operative provisions

115‑210  When this Subdivision applies
 (1) This Subdivision applies if a trust estate has a *net capital gain for an income year that is taken into account in working out the trust estate's net income (as defined in section 95 of the Income Tax Assessment Act 1936) for the income year.
 (2) If the trust estate has a beneficiary that is a *complying superannuation entity that is a trust, this Subdivision applies in relation to the complying superannuation entity as a beneficiary but not as a trust estate. This Subdivision does not apply otherwise to a *complying superannuation entity that is a trust.

115‑215  Assessing presently entitled beneficiaries

Purpose
 (1) The purpose of this section is to ensure that appropriate amounts of the trust estate's net income attributable to the trust estate's *capital gains are treated as a beneficiary's capital gains when assessing the beneficiary, so:
 (a) the beneficiary can apply *capital losses against gains; and
 (b) the beneficiary can apply the appropriate *discount percentage (if any) to gains.

Extra capital gains
 (3) If you are a beneficiary of the trust