Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:1_1:p14
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 14/19)
Character Range: 34083–36726

(3) Public entities (within the meaning of subsection 152‑30(6)) cannot make the choice.

152‑310  Consequences of choice

Consequences in all cases

 (1) If the individual, company or trust makes the choice mentioned in section 152‑305 for any part of the *capital gain from the *CGT asset, that part of the capital gain equal to its *CGT exempt amount is disregarded.

Additional consequence for an individual

 (2) This Act applies to you as if the *capital proceeds from the *CGT event (to the extent of the asset's *CGT exempt amount) were an *eligible termination payment made to you at the later of:
 (a) when you made the choice; and
 (b) when you received the amount.

Note: For the rules about eligible termination payments, see Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936.

 (3) In working out those *capital proceeds, disregard the market value substitution rule (see section 116‑30).

 (4) The amount of that *eligible termination payment is, for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936, a CGT exempt component.

Additional consequences for a company or trust

 (5) Any *eligible termination payment or part of one the company or trust makes to comply with section 152‑325:
 (a) is, for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936, a CGT exempt component; and
 (b) cannot be deducted from the company's or trust's assessable 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 2 *CGT concession stakeholders, it must specify in writing the percentage of each *CGT asset's *CGT exempt amount that is attributable to each of those stakeholders. One of the percentages may be nil, but they must add up to 100%.

Example: Daryl is a controlling individual of a company. The company specifies 90% for Daryl under subsection (5) (which means that the percentage specified for the