Document ID: chunk:federal_register_of_legislation:C2025C00014:section:461:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 461 (pt 2/3)
Character Range: 2121158–2123731

paragraph (a) of this subsection) it exceeds the consideration from the disposal or the capital proceeds from the CGT event, then only so much of the surplus as does not exceed that consideration or those capital proceeds is to be taken into account under paragraph (1)(c); and
 (c) where there are 2 or more attribution surpluses referred to in paragraph (1)(c) and (after any application of paragraph (a) of this subsection) their sum exceeds the consideration from the disposal or the capital proceeds from the CGT event, then:
 (i) if the taxpayer makes an election that, for the purposes of this paragraph, a part of each surplus (after any application of paragraph (a)) such that the sum of the amounts to which the election relates equals that consideration or those capital proceeds—only the part to which the election relates of each surplus is to be taken into account under paragraph (1)(c); or
 (ii) if subparagraph (i) does not apply—only a proportion of each surplus (after any application of paragraph (a)) is to be taken into account under paragraph (1)(c), being the proportion calculated using the formula:

  where:
  consideration means the amount of the consideration or the capital proceeds.
  total surplus means the sum of the attribution surpluses (after any application of paragraph (a)).
 (4) An election for the purposes of paragraph (3)(c) must be made on or before the date of lodgment of the taxpayer's return of income for the year of income referred to in paragraph (1)(a) or within such further period after the lodgment of the return as the Commissioner allows.
 (4A) In determining, for the purposes of this section, whether there was an attribution surplus immediately before a CGT event, and the amount of such a surplus, also take into account any attribution credit that later arises because the CGT event caused section 104‑175 of the Income Tax Assessment Act 1997 (as it notionally applies to the CGT event entity under Division 7) to operate.
 (5) In this section:
interest, in relation to an attribution account entity, means:
 (a) if the entity is a company—an interest in shares in the company, or an entitlement to acquire such an interest; or
 (b) if the entity is a partnership—an interest of a partner in the profits or property of the partnership, or an entitlement of a partner to acquire such an interest; or
 (c) if the entity is a trust—an entitlement of a beneficiary to a share of the income or corpus of the trust, or an entitlement of a beneficiary to acquire such an entitlement.

Division 11—Keeping of records