Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p31
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 31/43)
Character Range: 4023380–4026112

securities market (within the meaning of that section); and
 (ii) at the time you acquired the arrangement, it was not open to you to acquire an identical financial arrangement in the ordinary course of trading on a securities market; and
 (d) if the arrangement is a marketable security—you did not dispose of the arrangement in the course of trading on a securities market; and
 (e) it would be concluded that you ceased to have the arrangement wholly or partly because there was an apprehension or belief that the other party or other parties to the arrangement were, or would be likely to be, unable or unwilling to discharge all their liabilities to pay amounts under the arrangement.
 (2) The amount of the loss is reduced by so much of that amount as is a loss of capital or a loss of a capital nature.
Note: However, the amount by which the loss is reduced is a capital loss.
 (3) In applying paragraph (1)(e), you must have regard to:
 (a) the financial position of the other party or parties to the *financial arrangement; and
 (b) the perceptions of the financial position of the other party or parties to the arrangement; and
 (c) other relevant matters.

230‑470  Forgiveness of commercial debts
  If a gain that you make from a *financial arrangement arises from the *forgiveness of a debt to which Subdivisions 245‑C to 245‑G apply, the gain is reduced by:
 (a) if section 245‑90 (about agreements to forgo capital losses or deductions) applies—the debt's provisional net forgiven amount mentioned in that section; or
 (b) if that section does not apply—the debt's *net forgiven amount.
Note: Section 51AAA (about a net capital gains limit) of the Income Tax Assessment Act 1936 also has the effect of preventing you from deducting losses.

230‑475  Clarifying exceptions

Exceptions
 (1) To avoid doubt, this Division does not apply to your gains and losses from a *financial arrangement for any income year to the extent that your rights and/or obligations are the subject of an exception under any of the following subsections.
 (2) This section is not intended to limit, expand or otherwise affect the operation of sections 230‑45 to 230‑55 (which tell you what is covered by the concept of financial arrangement) in relation to rights and/or obligations other than those dealt with in this section.

Retirement village and residential or flexible care arrangements
 (3) The following rights and obligations are the subject of an exception:
 (a) a right or obligation arising under a *retirement village residence contract;
 (b) a right or obligation arising under a *retirement village services contract;
 (c) a right or obligation arising under an *arrangement under which *residential care or *flexible care is