Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 108.15

  (1)   This section sets out what happens if:

  (a)   you own * collectables that are a set; and

  (b)   they would ordinarily be * disposed of as a set; and

  (c)   you dispose of them in one or more transactions for the purpose of trying to obtain the exemption in section   118 - 10.

Example:   You buy a set of 3 books for $900. You apportion the $900 among each book: see section   112 - 30. If the books are of equal value, you have acquired each one for $300.

  If you dispose of each book individually, you would ordinarily obtain the exemption in section   118 - 10, because you acquired each one for less than $500.

  (2)   The set of * collectables is taken to be a single * collectable and each of your * disposals is a disposal of part of that collectable.

Example:   To continue the example, the 3 books are taken to be a single collectable. You will not obtain the exemption in section   118 - 10, because you acquired the set for more than $500.

  You work out if you make a capital gain or loss from a disposal of part of an asset by comparing the capital proceeds from it with the cost base or reduced cost base (as appropriate) of the disposed part.

Note 1:   Section   112 - 30 tells you how to apportion the cost base and reduced cost base of a CGT asset on a disposal of part of an asset.

Note 2:   This section does not apply to a collectable you last acquired before 16   December 1995: see section   108 - 15 of the Income Tax (Transitional Provisions) Act 1997 .