Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 1/58)
Character Range: 2301684–2304421

7                   A policy of insurance against an individual suffering an illness or injury                                                                                                                                                                              the trustee of a *complying superannuation entity for the income year in which the *CGT event happened

              Example 1: Brian (as the insured) receives an insurance payment from his insurer for the destruction of a building he owned as an investment. The payment constitutes capital proceeds on the destruction (CGT event C1). The discharge of the insurance policy (CGT event C2) has no CGT consequences.
              Example 2: Peter is the original beneficial owner of the rights under a policy of insurance on the life of an individual. He transfers the rights to his spouse for nothing. There are no CGT consequences for him, and none for his spouse if he dies.

Payment to trust beneficiary (or representative) if trustee owns the policy or instrument
 (1A) A *capital gain or *capital loss you make from a *CGT event happening because you receive a *CGT asset from the trustee of a trust is disregarded if:
 (a) you receive the CGT asset as:
 (i) a beneficiary of the trust; or
 (ii) a *legal personal representative of a beneficiary of the trust; and
 (b) the CGT asset is attributable to another CGT event and CGT asset to which table item 3 in subsection (1) applies for the trustee.
 (2) Only these *CGT events are relevant: CGT events A1, B1, C2, E1, E2, E3, E5, E6, E7, E8, I1, I2, K3 and K4.
Note: The full list of CGT events is in section 104‑5.

118‑305  Superannuation
 (1) A *capital gain or *capital loss is disregarded if you make it from a *CGT event happening in relation to any of the following:
 (a) a right to an allowance, annuity or capital amount payable out of a *superannuation fund or *approved deposit fund;
 (b) a right to an asset of such a fund;
 (c) a right to any part of such an allowance, annuity, capital amount or asset.
Example: Angela retires from her employment and receives a lump sum payment from her superannuation fund. This is an example of CGT event C2 (her rights to receive the payment ending). There are no CGT consequences for Angela.
 (2) However, this exemption is not available if:
 (a) you are the trustee of the fund and a *CGT event happens in relation to a *CGT asset of the fund; or
 (b) an entity receives a payment or property where:
 (i) the entity was not a member of the fund; and
 (ii) the entity *acquired the right to the payment or property for consideration.
 (3) Subsection (2) does not apply if:
 (a) a *payment split applies to a *splittable payment; and
 (b) as a result, a payment is