Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 10/29)
Character Range: 2869161–2871858

or trust's assessable income.

Additional consequences in relation to interposed entities
 (3) If:
 (a) an entity (the paying entity) receives a payment (whether directly or indirectly through one or more interposed entities) that a company or trust makes to comply with section 152‑325; and
 (b) the paying entity passes on the payment to the *CGT concession stakeholder or another interposed entity;
then:
 (c) the payment cannot be deducted from the paying entity's assessable income; and
 (d) the payment received by the paying entity is not assessable income and is not *exempt income.

152‑315  Choosing the amount to disregard
 (1) You can choose to disregard all or part of each *capital gain to which this Subdivision applies.
Note 1: You make capital gains equal to any parts that you do not choose to disregard.
Note 2: Section 103‑25 tells you when the choice must be made.
 (2) However, the choice must be made in a way that ensures that:
 (a) for an individual—your *CGT retirement exemption limit is not exceeded; or
 (b) for a company or trust—the CGT retirement exemption limit of each individual for whom the choice is made is not exceeded.
 (3) The amount chosen for the asset is its CGT exempt amount.
 (4) The *CGT exempt amount must be specified in writing.
 (5) If a company or trust is making the choice and it has more than one *CGT concession stakeholder, it must specify in writing the percentage of each *CGT asset's *CGT exempt amount that is attributable to each of those stakeholders. One or more of the percentages may be nil, but all of the percentages must add up to 100%.
Example: Daryl is a significant individual in a company. The company specifies 90% for Daryl under subsection (5) (which means that the percentage specified for the other stakeholder must be 10%). Daryl's retirement exemption limit is $500,000.
 To determine whether subsection (2) is complied with, Daryl would take 90% of the asset's CGT exempt amount, add that to amounts previously specified in choices made by or for him under this Subdivision and see whether the total exceeds $500,000.
Note: Subsections (4) and (5) are exceptions to the general rule about choices in section 103‑25.

152‑320  Meaning of CGT retirement exemption limit
 (1) An individual's CGT retirement exemption limit at a time is $500,000 reduced by the *CGT exempt amounts of *CGT assets specified in choices previously made by or for the individual under this Subdivision.
Note: The $500,000 is also reduced by any reduction under old provisions about reduction of the CGT retirement exemption limit: see item 62 of Schedule 1 to the New Business Tax System (Capital Gains Tax) Act 1999.
 (2) If the individual