Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 5/6)
Character Range: 2109437–2112153

roll‑overs
115‑34 Further special rule about time of acquisition for certain replacement‑asset roll‑overs

What are not discount capital gains?
115‑40 Capital gain resulting from agreement made within a year of acquisition
115‑45 Capital gain from equity in an entity with newly acquired assets
115‑50 Discount capital gain from equity in certain entities
115‑55 Capital gains involving money received from demutualisation of friendly society health or life insurer

What is a discount capital gain?

115‑5  What is a discount capital gain?
  A discount capital gain is a *capital gain that meets the requirements of sections 115‑10, 115‑15, 115‑20 and 115‑25.
Note: Sections 115‑40, 115‑45 and 775‑70 identify capital gains that are not discount capital gains, despite this section.

115‑10  Who can make a discount capital gain?
  To be a *discount capital gain, the *capital gain must be made by:
 (a) an individual; or
 (b) a *complying superannuation entity; or
 (c) a trust; or
 (d) a *life insurance company in relation to a *discount capital gain from a *CGT event in respect of a *CGT asset that is a *complying superannuation asset.

115‑15  Discount capital gain must be made after 21 September 1999
  To be a *discount capital gain, the *capital gain must result from a *CGT event happening after 11.45 am (by legal time in the Australian Capital Territory) on 21 September 1999.

115‑20  Discount capital gain must not have indexed cost base
 (1) To be a *discount capital gain, the *capital gain must have been worked out:
 (a) using a *cost base that has been calculated without reference to indexation at any time; or
 (b) for a capital gain that arose under *CGT event K7—using the *cost of the *depreciating asset concerned.
Note: A listed investment company must also calculate capital gains without reference to indexation in order to allow its shareholders to access the concessions in Subdivision 115‑D.
 (2) For the purposes of working out whether the *capital gain is a *discount capital gain and the amount of that gain, the *cost base taken into account in working out the capital gain may be recalculated without reference to indexation if the cost base had an element including indexation because of another provision of this Act. This subsection has effect despite that other provision.
Note: This lets a capital gain of an entity (the gain entity) on a CGT asset be a discount capital gain even if:
(a) another provision of this Act (such as a provision for a same‑asset 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