Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 8/22)
Character Range: 2163611–2166257

make a choice that has the effect that the trustee will be assessed on a *capital gain of the trust if no trust property representing the capital gain has been paid to or applied for the benefit of a beneficiary of the trust.

Trusts for which choice can be made
 (2) A trustee can only make a choice under this section in relation to a trust estate that is, in the income year in respect of which the choice is made, a resident trust estate (within the meaning of Division 6 of Part III of the Income Tax Assessment Act 1936).

Circumstances in which choice can be made
 (3) If:
 (a) a *capital gain is taken into account in working out the *net capital gain of a trust for an income year; and
 (b) trust property representing all or part of that capital gain has not been paid to or applied for the benefit of a beneficiary of the trust by the end of 2 months after the end of the income year;
the trustee may, no later than the deadline in subsection (5), make a choice that subsection (4) applies in respect of the capital gain.

Consequences if trustee makes choice
 (4) These are the consequences if the trustee makes a choice that this subsection applies in respect of a *capital gain:
 (a) sections 115‑215 and 115‑220 do not apply in relation to the capital gain;
 (b) for the purposes of this Act, the trustee is taken to be *specifically entitled to all of the capital gain.

Deadline for making choice
 (5) The deadline for the purposes of subsection (3) is:
 (a) the day 2 months after the last day of the income year; or
 (b) a later day allowed by the Commissioner.
Note: This deadline is an exception to the general rule about choices in section 103‑25.

Subdivision 115‑D—Tax relief for shareholders in listed investment companies

Guide to Subdivision 115‑D

115‑275  What this Subdivision is about

      This Subdivision allows shareholders of certain listed companies to obtain benefits similar to those conferred by discount capital gains.
      The benefits accrue where dividends paid by those companies represent capital gains that would be discount capital gains had they been made by an individual, a trust or a complying superannuation entity.

Table of sections

Operative provisions
115‑280 Deduction for certain dividends
115‑285 Meaning of LIC capital gain
115‑290 Meaning of listed investment company
115‑295 Maintaining records

Operative provisions

115‑280  Deduction for certain dividends
 (1) You can deduct an amount for a *dividend paid to you by a company (the payment company) if:
 (a) you are:
 (i) an individual, a *complying superannuation entity, a trust or a partnership; or
 (ii) a *life insurance