Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 5/29)
Character Range: 2210528–2213333

There are also exemptions in Divisions 315 and 316 (about demutualisation of certain insurers).

Subdivision 118‑A—General exemptions

Table of sections

Exempt assets
118‑5 Cars, motor cycles and valour decorations
118‑10 Collectables and personal use assets
118‑12 Assets used to produce exempt income etc.
118‑13 Shares in a PDF
118‑15 Registered emissions units

Anti‑overlap provisions
118‑20 Reducing capital gains if amount otherwise assessable
118‑21 Carried interests
118‑22 Superannuation lump sums and employment termination payments
118‑24 Depreciating assets
118‑25 Trading stock
118‑27 Division 230 financial arrangements and financial arrangements to which Subdivision 250‑E applies
118‑30 Film copyright
118‑35 R&D

Exempt or loss‑denying transactions
118‑37 Compensation, damages etc.
118‑40 Expiry of a lease
118‑42 Transfer of stratum units
118‑45 Sale of rights to mine
118‑55 Foreign currency hedging gains and losses
118‑60 Certain gifts
118‑65 Later distributions of personal services income
118‑70 Transactions by exempt entities
118‑75 Marriage or relationship breakdown settlements
118‑77 Native title and rights to native title benefits

Boat capital gains
118‑80 Reduction of boat capital gain

Special disability trusts
118‑85 Special disability trusts

Exempt assets

118‑5  Cars, motor cycles and valour decorations
  A *capital gain or *capital loss you make from any of these *CGT assets is disregarded:
 (a) a *car, motor cycle or similar vehicle;
 (b) a decoration awarded for valour or brave conduct (unless you paid money or gave any other property for it).

118‑10  Collectables and personal use assets
 (1) A *capital gain or *capital loss you make from a *collectable is disregarded if the first element of its *cost base, or the first element of its *cost if it is a *depreciating asset, is $500 or less.
Example: On 10 July 2001, Gayle buys a print for $450 and hangs it in her home. On 30 November 2001 she takes the print to her office and hangs it in the lobby. Gayle self assesses the effective life of the print to be 7 years.
 Gayle sells the print to Anna for $700 on 2 January 2002.
 How much can Gayle deduct for the 2001‑02 income year?
 The cost of the print is $450. Gayle chooses to use the prime cost method to calculate its decline in value.
 The print's decline in value is:
 = $31
 Gayle can deduct $6 as the taxable use portion of the decline in value under Division 40:
 Due to the balancing adjustment event that occurred on 2 January 2002, $54 is included in Gayle's assessable income for the 2001‑02 income year under section 40‑285. The amount is reduced for non‑taxable use by section 40‑290.
 A capital gain of $202 is disregarded under this section because the asset is a collectable acquired for less than $500.
 (2) However, there is a