Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 3/16)
Character Range: 7562324–7564922

(c) either:
 (i) the asset is not *taxable Australian property for the CGT event trust at the time of the CGT event; or
 (ii) the asset is an interest in a fixed trust and the conditions in subsections (5), (6), (7) and (8) are satisfied.
Note: Section 115‑215 treats a portion of a trust's capital gain as a capital gain made by a beneficiary, and applies the CGT discount to that portion as if the gain were made directly by the beneficiary.
 (3) You are not liable to pay tax as a trustee of a *fixed trust in respect of an amount to the extent that the amount gives rise to a *capital gain that is disregarded for a beneficiary under subsection (2).
 (4) To avoid doubt, subsection (3) does not affect the operation of subsection 98A(1) or (3) of the Income Tax Assessment Act 1936 (about taxing beneficiaries who are foreign residents at the end of an income year).

Conditions
 (5) The conditions in subsections (6), (7) and (8) must be satisfied if the relevant *CGT event happens to an interest in a *fixed trust (the first trust) and the interest is *taxable Australian property at the time of the CGT event.
 (6) At least 90% (by *market value) of the *CGT assets of:
 (a) the first trust; or
 (b) a *fixed trust in which the first trust has an interest (directly, or indirectly through a *chain of trusts, each trust in which is a fixed trust);
must not be *taxable Australian property at the time of the relevant *CGT event.
 (7) If the condition in subsection (6) is not satisfied for the first trust (but is satisfied for a trust covered by paragraph (6)(b)), the condition in subsection (8) must be satisfied for the first trust, and for each other trust in the *chain of trusts between the first trust and the trust that satisfied the condition in subsection (6).
 (8) The condition is that, assuming any interest in a *fixed trust in that *chain not to be *taxable Australian property, at least 90% (by *market value) of the *CGT assets of the trust must not be taxable Australian property.

Subdivision 855‑B—Becoming an Australian resident

Table of sections
855‑45 Individual or company becomes an Australian resident
855‑50 Trust becomes a resident trust
855‑55 CFC becomes an Australian resident

855‑45  Individual or company becomes an Australian resident
 (1) If you become an Australian resident, there are rules relevant to each *CGT asset that you owned just before you became an Australian resident, except an asset:
 (a) that is *taxable Australian property; or
 (b) that you *acquired before 20 September 1985.
Note: This section has effect subject to section 768‑950