(1) Despite section 230 - 15, a gain that you make from a * financial arrangement:
(a) to the extent that it reflects an amount that would be treated, or would reasonably expected to be treated, as * exempt income under a provision of this Act if this Division were disregarded--is exempt income; and
(b) to the extent that it reflects an amount that would be treated or would reasonably expected to be treated, as * non - assessable non - exempt income under a provision of this Act if this Division were disregarded--is not assessable income and is not exempt income.
(2) Despite section 230 - 15, a gain that you make from a * financial arrangement:
(a) to the extent that, if it had been a loss, you would have made it in gaining or producing * exempt income--is exempt income; and
(b) to the extent to which, if it had been a loss, you would have made it in gaining or producing * non - assessable non - exempt income--is not assessable income and is not exempt income.
(3) A loss you make from a * financial arrangement is not allowable as a deduction to you under any provision of this Act (other than subsection 230 - 15(3)) to the extent that you make it in gaining or producing your:
(b) * non - assessable non - exempt income.