Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:1_1:p15
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 15/19)
Character Range: 36496–39219

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 other stakeholder must be 10%). Daryl's retirement exemption limit is $500,000.

 To determine whether subsection (2) is complied with, Daryl would take 90% of the asset's CGT exempt amount, add that to amounts previously specified in choices made by or for him under this Subdivision and see whether the total exceeds $500,000.

Note: Subsections (4) and (5) are exceptions to the general rule about choices in section 103‑25.

152‑320  Meaning of CGT retirement exemption limit

 (1) An individual's CGT retirement exemption limit at a time is $500,000 reduced by the *CGT exempt amounts of *CGT assets specified in choices previously made by or for the individual under this Subdivision.

 (2) If the individual was one of 2 *CGT concession stakeholders of a company or trust, and the company or trust made a choice for the individual, only the individual's percentage (see subsection 152‑315(5)) of the assets' *CGT exempt amounts is taken into account under subsection (1) for that choice.

152‑325  Company or trust conditions

 (1) Each time a company or trust receives an amount of *capital proceeds from a *CGT event for which it makes a choice under this Subdivision, the company or trust must make an *eligible termination payment in relation to each of its *CGT concession stakeholders.

 (2) If there are 2 such stakeholders, the amount of each such *eligible termination payment is to be worked out by reference to each individual's percentage (see subsection 152‑315(5)) of the relevant *CGT exempt amount.

 (3) The payment must be made by the later of:
 (a) 7 days after it makes the choice; and
 (b) 7 days after it receives an amount of *capital proceeds from the *CGT event.

 (4) In working out those *capital proceeds, disregard:
 (a) section 103‑10 (which deals with proceeds that are applied for your benefit rather than being paid directly to you); and
 (b) the market value substitution rule (see section 116‑30).

 (5) The amount of the *eligible termination payment, or the sum of the amounts of the eligible termination payments, required to be made under subsection (1) must be equal to the lesser of:
 (a) the amount of *capital proceeds received; and
 (b) the relevant *CGT exempt amount.

 (6) If this section requires the company or trust to make 2 or more *eligible termination payments to a single stakeholder (whether or not by the same time), the company or trust may meet that requirement by making one payment or by making separate payments.

 (7) If