Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 6/6)
Character Range: 2111938–2114035

roll‑over or Division 128) set the gain entity's cost base for the asset by reference to the cost base for the asset when it was owned by another entity (the earlier owner), and the earlier owner's cost base for the asset included indexation; or
(b) another provision of this Act (such as a provision for a replacement‑asset roll‑over) set the cost base of the asset by reference to the cost base of the original asset involved in the roll‑over, and the original asset's cost base included indexation.
Example: In 1995 Elizabeth acquired land from her ex‑husband under an order made by a court under the Family Law Act 1975. Former section 160ZZM of the Income Tax Assessment Act 1936 treated her as having paid $56,000 for the land, equal to her ex‑husband's indexed cost base for it. His cost base for the land then was $40,000.
 In 2000, she sold the land for capital proceeds of $150,000.
 Her discount capital gain on the land is $110,000 (equal to the capital proceeds less the cost base for the land without indexation).
 (3) This section does not apply to a *capital gain worked out under subsection 104‑255(3) (about carried interests).

115‑25  Discount capital gain must be on asset acquired at least 12 months before
 (1) To be a *discount capital gain, the *capital gain must result from a *CGT event happening to a *CGT asset that was *acquired by the entity making the capital gain at least 12 months before the CGT event.
Note 1: Even if the capital gain results from a CGT event happening at least a year after the CGT asset was acquired, the gain may not be a discount capital gain, depending on the cause of the CGT event (see section 115‑40) and the nature of the asset (see sections 115‑45 and 115‑50).
Note 2: Section 115‑30 or 115‑34 may affect the time when the entity is treated as having acquired the CGT asset.
 (2) To avoid doubt, subsection (1) applies to the *CGT asset shown in the table for a *CGT event listed in the table.

CGT assets to which subsection (1) applies
Item                                        CGT event  CGT asset to which subsection (1) applies