Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 9/20)
Character Range: 1798978–1801462

CGT event A1 happening as a result of a demerger is also disregarded: see section 125‑155.
Note 4: A capital gain or loss you make because of section 16AI of the Banking Act 1959 is disregarded: see section 253‑10 of this Act. Section 16AI of the Banking Act 1959:
(a) reduces your right to be paid an amount by an ADI in connection with an account to the extent of your entitlement under Division 2AA of Part II of that Act to be paid an amount by APRA; and
(b) provides that, to the extent of the reduction, the right becomes a right of APRA.
Note 5: A capital gain or loss you make because, under section 62ZZL of the Insurance Act 1973, you dispose of a CGT asset consisting of your rights against a general insurance company to APRA is disregarded: see section 322‑30 of this Act.

Compulsory acquisition
 (6) If the asset was *acquired from you by an entity under a power of compulsory acquisition conferred by an *Australian law or a *foreign law, the time of the event is the earliest of:
 (a) when you received compensation from the entity; or
 (b) when the entity became the asset's owner; or
 (c) when the entity entered it under that power; or
 (d) when the entity took possession under that power.
Note: You may be able to choose a roll‑over if an asset is compulsorily acquired: see Subdivision 124‑B.

Subdivision 104‑B—Use and enjoyment before title passes

104‑15  Use and enjoyment before title passes: CGT event B1
 (1) CGT event B1 happens if you enter into an agreement with another entity under which:
 (a) the right to the use and enjoyment of a *CGT asset you own passes to the other entity; and
 (b) title in the asset will or may pass to the other entity at or before the end of the agreement.
Note: Division 240 provides for the inclusion of amounts under hire purchase agreements in assessable income.
 (2) The time of the event is when the other entity first obtains the use and enjoyment of the asset.
 (3) You make a capital gain if the *capital proceeds from the agreement are more than the asset's *cost base. You make a capital loss if those capital proceeds are less than the asset's *reduced cost base.

Exceptions
 (4) A *capital gain or *capital loss you make is disregarded if:
 (a) title in the asset does not pass to the other entity at or before the end of the agreement; or
 (b) you *acquired the asset before 20 September 1985.

Subdivision 104‑C—End of a CGT asset

Table of sections
104‑20 Loss or destruction of a CGT asset: CGT event C1