Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 9/29)
Character Range: 2866738–2869426

you can choose to disregard all or part of a *capital gain if:
 (a) the basic conditions in Subdivision 152‑A are satisfied for the gain; and
 (b) if you are under 55 just before you make the choice—you contribute an amount equal to the asset's *CGT exempt amount to a *complying superannuation fund or an *RSA; and
Note: For the non‑deductibility of the contribution, see subsection 290‑150(4).
 (c) the contribution is made:
 (i) if the relevant CGT event is CGT event J2, J5 or J6—when you made the choice; or
 (ii) otherwise—at the later of when you made the choice and when you received the proceeds.
Note 1: Section 103‑25 tells you when the choice must be made.
 (1A) If you receive the *capital proceeds from the *CGT event in instalments, paragraphs (1)(b) and (c) apply to each instalment in succession (up to the asset's *CGT exempt amount).
 (1B) For the purposes of (but without limiting) subsection (1A), you are treated as receiving the *capital proceeds in instalments if:
 (a) the *CGT event happened because you *disposed of the *CGT asset; and
 (b) the capital proceeds from the disposal are increased by one or more *financial benefits that you receive under a *look‑through earnout right.

Company or trust
 (2) A company or a trust (except a public entity—see subsection (3)) can also choose to disregard such an amount if:
 (a) the basic conditions in Subdivision 152‑A are satisfied for the *capital gain; and
 (b) the entity satisfies the significant individual test (see section 152‑50); and
 (c) the company or trust conditions in section 152‑325 are satisfied.
Note: Section 103‑25 tells you when the choice must be made.
 (3) Entities of a kind referred to in subsection 328‑125(8) cannot make the choice.
 (4) Paragraphs (1)(a) and (2)(a) do not apply if the *capital gain arose from *CGT event J5 or J6.

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 consequences in relation to company or trust
 (2) Any payment or part of one the company or trust makes to comply with section 152‑325:
 (a) is not assessable income, and is not *exempt income, of the *CGT concession stakeholder to whom it is made; and
 (b) cannot be deducted from the company's 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