Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 295.85

  (1)   The modifications in subsection   (2) apply if a * CGT event happens involving a * CGT asset that was owned by a * complying superannuation entity just before the time of the event.

  (2)   These provisions do not apply to the * CGT event:

  (a)   sections   6 - 5 (about * ordinary income), 8 - 1 (about amounts you can deduct), and 15 - 15 and 25 - 40 (about profit - making undertakings or plans);

  (aa)   section   230 - 15 (about financial arrangements);

  (b)   sections   25A and 52 of the Income Tax Assessment Act 1936 (about profit - making undertakings or schemes).

Exceptions

  (3)   The provisions referred to in subsection   (2) can apply to the * CGT event if:

  (a)   any * capital gain or * capital loss from the event is attributable to currency exchange rate fluctuations; or

  (b)   the * CGT asset is one of these:

  (i)   debenture stock, a bond, * debenture, certificate of entitlement, bill of exchange, promissory note or other security;

  (ii)   a deposit with a bank, building society or other financial institution;

  (iii)   a loan (secured or not);

  (iv)   some other contract under which an entity is liable to pay an amount (whether the liability is secured or not).

  (4)   The provisions referred to in subsection   (2) can also apply to the * CGT event if a * capital gain or * capital loss from the event is disregarded because of one of the provisions in this table:

 

Where gain or loss disregarded because of CGT provision
Item	Provision	Brief description
1	Paragraph   104 - 15(4)(a)	Title in a CGT asset does not pass when a hire purchase or similar agreement ends
2	Section   118 - 5	Cars, motor cycles and valour decorations
3	Section   118 - 10	Collectables and personal use assets
4	Section   118 - 13	Shares in a PDF
5	Section   118 - 25	Trading stock
6	Section   118 - 30	Film copyright
7	Section   118 - 35	R&D
8	Section   118 - 55	Foreign currency hedging gains and losses
9	Section   118 - 60	Certain gifts
10	Subsection   118 - 300(1), for general insurance policies covered by table item   2 in that subsection	General insurance policies for property
11	Section   118 - 305	Superannuation
12	Section   118 - 310	CGT event happens to right to, or part of, RSA

Note:   For item   5, certain assets (particularly shares, units in a unit trust, and land) are not trading stock when owned by the entity (see paragraph   70 - 10(2)(b)).