Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:4_5:p2
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 4 cl 5 (pt 2/4)
Character Range: 297587–300440

work out the total (the concession amount) of:
 (a) the amount (if any) by which the choice of indexation reduced your notional gain from what it would have been without the indexation; and
 (b) the amount (if any) by which your notional gain was reduced under step 3 of the method statement in subsection 102‑5(1) (discount capital gains); and
 (c) the amount (if any) by which your notional gain was reduced under paragraph 115‑215(4)(b) (small business 50% reduction).
(If none of those amounts exists, the concession amount is nil.)

Note: For a company, the concession amount will be nil unless the company is eligible for the small business 50% reduction.

Example: David is taken to have a notional gain of $10,000 under paragraph 115‑215(3)(b). David applies $2,000 worth of losses leaving a gain of $8,000. That gain is reduced by $4,000 because of the general discount of 50%, leaving a gain of $4,000. David's concession amount is $4,000.

Working out the maximum excluded amount

 (4) Then, compare the maximum non‑assessable part with the concession amount:
 (a) if the maximum non‑assessable part is greater:
 (i) the difference is the maximum excluded amount; and
 (ii) subsection (5) applies; but
 (b) otherwise, the original non‑assessable part is not reduced by this section.

Note: The maximum excluded amount is the maximum amount by which non‑assessable parts of payments attributable to proceeds from the trust gain can be reduced.

Example: David's maximum excluded amount is $1,000 ($5,000 ‑ $4,000).

Is the concession amount used up?

 (5) Compare the original non‑assessable part of the actual payment with the concession amount:
 (a) if the original non‑assessable part is greater, subsection (6) applies to reduce it; but
 (b) otherwise, the original non‑assessable part is not reduced.

Note: If the original non‑assessable part of this payment is not reduced, you may be able to reduce the non‑assessable part of a later payment that is attributable to the proceeds from the same trust gain.

Example: David receives an actual payment of $9,500 with an original non‑assessable part of $4,500. This amount is greater than the concession amount of $4,000, so subsection (6) reduces the original non‑assessable part.

Amount of reduction

 (6) The original non‑assessable part of the actual payment is reduced by the lesser of:
 (a) the amount by which the original non‑assessable part of the actual payment exceeds the concession amount; and
 (b) the maximum excluded amount.

Example: David's original non‑assessable part of $4,500 exceeds the concession amount of $4,000 by $500. This is less than the maximum excluded amount of $1,000. David therefore reduces his original non‑assessable by $500 and includes only $4,000 as a non‑assessable part under section 104‑70.

Effect of previous payments from proceeds of the