Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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 .