Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 115.105

Object

  (1)   The object of this section (with section   115 - 115) is to adjust the discount percentage so as to deny you a discount to the extent that you accrued a * capital gain while a foreign resident or * temporary resident.

When this section applies

  (2)   This section applies to a * discount capital gain if:

  (a)   you are an individual; and

  (b)   you * acquire a * CGT asset; and

  (c)   you make the discount capital gain from a * CGT event happening in relation to the CGT asset; and

  (d)   the period (the discount testing period ):

  (i)   starting on the day you acquired the CGT asset; and

  (ii)   ending on the day the CGT event happens;

    ends after 8   May 2012; and

  (e)   you were a foreign resident or * temporary resident during some or all of so much of that period as is after 8   May 2012.

Note:   Section   115 - 30 has special rules about when assets are acquired.

Changed residency status

  (3)   For the purposes of this section and section   115 - 115, if:

  (a)   another individual owned the * CGT asset on a particular day before the discount testing period ends; and

  (b)   on that day, that individual was one of the following (that individual's residency status ):

  (i)   an Australian resident (but not a * temporary resident);

  (ii)   a temporary resident;

  (iii)   a foreign resident; and

  (c)   section   115 - 30 treats you as having * acquired the CGT asset when that individual, or an earlier owner of the CGT asset, acquired it;

you are treated as having the same residency status on that day as that individual had on that day.