Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 116.80

  (1)   This section sets out what happens if:

  (a)   there is a fall in the * market value of a * personal use asset (other than a car, motor cycle or similar vehicle) or a * collectable of a company or trust; and

  (b)   * CGT event A1, C2 or E8 happens to:

  (i)   * shares you own in the company (or in a company that is a member of the same * wholly - owned group); or

  (ii)   an interest you have in the trust.

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

  (2)   The * capital proceeds from the event are replaced with the * market value of the * shares, or the interest in the trust.

    The market value is worked out as at the time of the event as if the fall in market value of the * personal use asset or * collectable had not occurred.

Note:   You may also make a collectable loss: see CGT event K5.