Document ID: chunk:federal_register_of_legislation:C2010C00637:clause:6_4
Version: federal_register_of_legislation:C2010C00637
Segment Type: clause
Provision Reference: sch 6 cl 4
Character Range: 44620–46513

4  At the end of Subdivision 115‑A
Add:

[The next section is section 115‑60.]

115‑60  Discount capital gain from CGT event E4

Purpose of this section

 (1) The purpose of this section is to ensure that section 115‑45 does not prevent your *capital gain from *CGT event E4 happening in the income year in relation to your unit or interest in a trust from being a *discount capital gain, if the gain is attributable to *CGT assets the trust *acquired at least 12 months before the event.

Note: Basically, you make a capital gain from CGT event E4 if the trustee of a trust makes one or more payments to you in relation to your interest in the trust, and the parts of those payments that are not included in your assessable income add up to more than the cost base of your interest: see section 104‑70.

 (2) Section 115‑45 does not prevent your *capital gain described in subsection (1) of this section from being a *discount capital gain if the gain is not more than the sum of the amounts that are:
 (a) amounts of the non‑assessable parts (mentioned in section 104‑70) of the payments made to you in the income year by the trustee in respect of the unit or interest as described in that section; and
 (b) attributable to *discount capital gains made by the trust.

Note 1: The non‑assessable parts of the payments may be from amounts not included in the trust's net income under Division 6 of Part III of the Income Tax Assessment Act 1936, such as the discount percentage of amounts of discount capital gains of the trust remaining after applying any capital losses and net capital losses of the trust.

Note 2: If your capital gain from CGT event E4 is a discount capital gain, you must work it out using the cost base of your unit or interest in the trust worked out under section 115‑20 without reference to indexation, despite Divisions 110 and 114 (which are about indexation).