Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_5:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 1/6)
Character Range: 289557–293014

5                   A *life insurance policy or an *annuity instrument                                                                                                             the trustee of:

                                                                                                                                                                                   (a) a *complying superannuation fund; or

                                                                                                                                                                                   (b) a *complying approved deposit fund; or

                                                                                                                                                                                   (c) a *pooled superannuation trust;

                                                                                                                                                                                   for the income year in which the *CGT event happened

Example 1: Brian (as the insured) receives an insurance payment from his insurer for the destruction of a building he owned as an investment. The payment constitutes capital proceeds on the destruction (CGT event C1). The discharge of the insurance policy (CGT event C2) has no CGT consequences.

Example 2: Peter is the original beneficial owner of the rights under a life insurance policy. He transfers the rights to his spouse for nothing. There are no CGT consequences for him, and none for his spouse if he dies.

 (2) Only these *CGT events are relevant: CGT events A1, B1, C2, E1, E2, E3, E5, E6, E7, E8, I1, I2, K3 and K4.

Note: The full list of CGT events is in section 104‑5.

118‑305  Superannuation

 (1) A *capital gain or *capital loss is disregarded if you make it from a *CGT event happening in relation to any of the following:

 (a) a right to an allowance, annuity or capital amount payable out of a *superannuation fund or *approved deposit fund;

 (b) a right to an asset of such a fund;

 (c) a right to any part of such an allowance, annuity, capital amount or asset.

Example: Angela retires from her employment and receives a lump sum payment from her superannuation fund. This is an example of CGT event C2 (her rights to receive the payment ending). There are no CGT consequences for Angela.

 (2) However, this exemption is not available if:

 (a) you are the trustee of the fund and a *CGT event happens in relation to a *CGT asset of the fund; or

 (b) an entity receives a payment or property where:

 (i) the entity was not a member of the fund; and

 (ii) the entity *acquired the right to the payment or property for consideration.

118‑310  RSA's

  A *capital gain or *capital loss you make from a *CGT event happening in relation to a right to, or any part of, an *RSA is disregarded.

Subdivision 118‑E—Units in pooled superannuation trusts

118‑350  Units in pooled superannuation trusts

 (1) A *capital gain or *capital loss an entity makes from a *CGT event happening in relation to a unit in a unit trust is disregarded if:

 (a) the trust is a *pooled superannuation trust for the income year in which the event happened; and

 (b) one of the conditions in subsection (2) is satisfied.

 (2) The entity must be:

 (a) the trustee of a *complying superannuation fund, a *complying approved deposit