Document ID: chunk:federal_register_of_legislation:C2019C00124:clause:2_3:p1
Version: federal_register_of_legislation:C2019C00124
Segment Type: clause
Provision Reference: sch 2 cl 3 (pt 1/5)
Character Range: 77413–79842

3  At the end of Subdivision 104‑E
Add:

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) the *cost base of that asset is reduced under subsection 104‑107B(2) at a time; and
 (c) the asset's *AMIT cost base net amount for the income year in which the reduction occurs exceeds the cost base of the asset.
 (2) The time of the event is the time at which the reduction occurs under section 104‑107B.
 (3) You make a capital gain equal to the excess mentioned in paragraph (1)(c).
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.

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.

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