Document ID: chunk:federal_register_of_legislation:C2010C00646:clause:4_10:p2
Version: federal_register_of_legislation:C2010C00646
Segment Type: clause
Provision Reference: sch 4 cl 10 (pt 2/4)
Character Range: 17313–19901

the after tax *LIC capital gain.

Example: A listed investment company disposes of a CGT asset for $30,000. The asset had a cost base of $10,000. The capital gain is therefore $20,000. The company applies a capital loss of $10,000 against the gain. Its net capital gain is $10,000.

 The net capital gain is subject to tax at 30%. The after tax gain is therefore $7,000.

 The company pays a fully franked dividend to Daryl, one of its shareholders. It advises Daryl that his share of the attributable part of the dividend is:

 Daryl, being an individual, can deduct 50% of $10, which is $5.

 (4) An amount is included in your assessable income if:
 (a) a deduction is allowed under subsection (1) to a trust or a partnership; and
 (b) you are a beneficiary of the trust or a partner in the partnership and you are not an individual; and
 (c) the income of the trust or partnership is reduced by an amount because of that deduction; and
 (d) a part of the deduction (the reduction amount) is reflected in your share of the net income of the trust or partnership.

 (5) The amount included is:
 (a) the reduction amount if you are a company, a trust (except a trust that is a *complying superannuation entity) or a partnership; or
 (b) one‑third of the reduction amount if you are a complying superannuation entity or a *life insurance company.

Example: The Burnett Partnership received a dividend from a listed investment company. The dividend statement advised that the dividend included a $100 attributable part. The partnership deducted $50 under this section in calculating its net income.

 The partnership has 2 equal partners, Amy Burnett and Burnett Consulting Pty Ltd.

 Burnett Consulting's assessable income includes its share of the net income of the partnership plus $25 (being that part of the $50 deduction allowed to the partnership that is reflected in the company's share of the partnership net income).

 Subsections (4) and (5) do not apply to Amy because she is an individual.

115‑285  Meaning of LIC capital gain

 (1) A LIC capital gain is a *capital gain:
 (a) from a *CGT event that happens on or after 1 July 2001; and
 (b) that is made by a company that is a *listed investment company from a *CGT asset that is an investment to which paragraph 115‑290(1)(c) applies; and
 (c) that meets the requirements of sections 115‑20 and 115‑25; and
 (d) that is not a capital gain that could not be a *discount capital gain had it been made by an individual because of section 115‑40 or 115‑45; and
 (e) that is included in the *net capital gain of the company; and