Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 16/40)
Character Range: 1863200–1865880

1936 is also taken into account for the purposes of this subsection: see section 104‑135 of the Income Tax (Transitional Provisions) Act 1997.
 (4) However, if the amount of the non‑assessable part is not more than the *share's *cost base, that cost base and its *reduced cost base are reduced by the amount of the non‑assessable part.
Note: Cost base adjustments are made only under Subdivision 125‑B if there is a roll‑over under that Subdivision for CGT event G1 happening as a result of a demerger.

Exceptions
 (5) A *capital gain you make is disregarded if you *acquired the *CGT asset that is the *share before 20 September 1985.
 (6) You disregard a payment by a liquidator for the purposes of this section if the company ceases to exist within 18 months of the payment.
Note: The payment will be part of your capital proceeds for CGT event C2 happening when the share ends.
 (7) You also disregard a payment that is *personal services income included in your assessable income, or another entity's assessable income, under section 86‑15.

104‑145  Liquidator or administrator declares shares or financial instruments worthless: CGT event G3
 (1) CGT event G3 happens if you own *shares in a company, or financial instruments issued by or created by or in relation to a company, and a liquidator or administrator of the company declares in writing that the liquidator or administrator has reasonable grounds to believe (as at the time of the declaration) that:
 (a) for shares—there is no likelihood that shareholders in the company, or shareholders of the relevant class of shares, will receive any further distribution for their shares; or
 (b) for financial instruments—the instruments, or a class of instruments that includes instruments of that kind, have no value or have only negligible value.
 (2) The time of the event is when the declaration was made.
 (3) Examples of financial instruments referred to in subsection (1) are:
 (a) *debentures, bonds or promissory notes issued by the company; and
 (b) loans to the company; and
 (c) futures contracts, forward contracts or currency swap contracts relating to the company; and
 (d) rights or options to acquire an asset referred to in a preceding paragraph of this subsection; and
 (e) rights or options to acquire *shares in the company.
 (4) You can choose to make a capital loss equal to the *reduced cost base of your *shares or financial instruments (as at the time of the declaration).
 (5) If you make the choice, the *cost base and *reduced cost base of the *shares or financial instruments are reduced to nil just after the declaration was made.
Note: This is for the purpose of working out if you make a