Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 6/29)
Character Range: 2213099–2215977

year under section 40‑285. The amount is reduced for non‑taxable use by section 40‑290.
 A capital gain of $202 is disregarded under this section because the asset is a collectable acquired for less than $500.
 (2) However, there is a special rule if the *collectable is an interest in one of these *CGT assets:
 (a) *artwork, jewellery, an antique, or a coin or medallion;
 (b) a rare folio, manuscript or book;
 (c) a postage stamp or first day cover.
  A *capital gain or *capital loss you make from the interest is disregarded only if the *market value of the asset (when you *acquired the interest) is $500 or less.
Note: If you last acquired the interest before 16 December 1995, a capital gain or loss is disregarded if you acquired the interest for $500 or less: see section 118‑10 of the Income Tax (Transitional Provisions) Act 1997.
 (3) A *capital gain you make from a *personal use asset, or part of the asset, is disregarded if the first element of the asset's *cost base, or the first element of its *cost if it is a *depreciating asset, is $10,000 or less.
Note: A capital loss you make from a personal use asset is disregarded: see subsection 108‑20(1).

118‑12  Assets used to produce exempt income etc.
 (1) A *capital gain or *capital loss you make from a *CGT asset that you used solely to produce your *exempt income or *non‑assessable non‑exempt income is disregarded.
 (2) However, the exemption does not apply if the asset was used to gain or produce an amount that is *non‑assessable non‑exempt income because of:
 (a) any of these provisions of this Act:
 (i) section 59‑15 (mining payments);
 (ia) section 59‑35 (amounts that would be mutual receipts but for prohibition on distributions to members or issue of MCIs);
 (ii) subsection 70‑90(2) (disposing of trading stock outside the ordinary course of business);
 (iii) section 86‑30 (income of a personal services entity);
 (iv) subsection 86‑35(1) (payment by a personal services entity);
 (v) subsection 86‑35(2) (share of personal services entity's net income);
 (vi) section 240‑40 (treatment of arrangement payments);
 (via) section 242‑40 (about luxury car lease payments);
 (vib) section 768‑5 (foreign equity distributions on participation interests);
 (vii) section 802‑15 (foreign residents—exempting CFI from Australian tax);
 (viii) section 840‑815 (foreign residents—final withholding tax on managed investment trust income); or
 (b) any of these provisions of the Income Tax Assessment Act 1936:
 (i) section 23AH (foreign branch profits of Australian companies);
 (ii) section 23AI (amounts paid out of attributed income);
 (iv) section 23AK (attributed foreign investment fund income);
 (v) subsection 23L(1) (fringe benefits);
 (vi) subsection 99B(2A) (attributed trust income);
 (vii) section 128D (dividends, royalties and interest subject to withholding tax);
 (viii) subsection