Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 102.3

  (1)   Concessional rules apply to working out the net capital gain of some entities (see subsection   (2)) if:

  (a)   they have a capital gain (a discount capital gain ) from a CGT asset acquired at least 12 months before the CGT event that caused the capital gain; and

  (b)   they have not chosen to include indexation in the cost base of the asset for working out the capital gain (if relevant).

Note 1:   Division   115 explains what is a discount capital gain.

Note 2:   Under Division   110, the entity can choose to include indexation in the cost base of a CGT asset acquired at or before 11.45 am on 21   September 1999.

  (2)   Only these entities get the concession:

  (a)   individuals;

  (b)   complying superannuation entities;

  (c)   trusts;

  (d)   life insurance companies, in relation to discount capital gains for CGT events in respect of CGT assets that are complying superannuation assets.

Note:   Shareholders in a listed investment company can also receive a concession equivalent to a discount capital gain: see Subdivision   115 - D.

  (3)   The concession is that the net capital gain includes only part of the amount of the discount capital gain left after applying capital losses and net capital losses from earlier income years.

See subsection   102 - 5(1).

Table of sections

Operative provisions

102 - 5   Assessable income includes net capital gain

102 - 10   How to work out your net capital loss

102 - 15   How to apply net capital losses

102 - 20   Ways you can make a capital gain or a capital loss

102 - 22   Amounts of capital gains and losses

102 - 23   CGT event still happens even if gain or loss disregarded

102 - 25   Order of application of CGT events

102 - 30   Exceptions and modifications