Commonwealth Consolidated Acts Commonwealth Consolidated ActsObject
(1) The object of this section (with section 115 - 115) is to adjust the discount percentage so as to deny you a discount for a * capital gain you make because of section 115 - 215 to the extent that the gain was accrued while you were 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 a beneficiary of a trust ( your trust ); and
(b) because of section 115 - 215, Division 102 applies to you as if you had made the discount capital gain on a particular day ( your gain day ) for a * capital gain (the relevant trust gain ) of the trust estate; and
(c) the period (the discount testing period ) worked out from the following table ends after 8 May 2012; and
(d) you were a foreign resident or * temporary resident during some or all of so much of that period as is after 8 May 2012.
Working out the discount testing period | ||
Item | Column 1 If this is the case: | Column 2 the discount testing period is: |
1 | your trust is a * fixed trust | the period: (a) starting on the most recent day (before your gain day) that you became a beneficiary of your trust; and (b) ending on your gain day. |
2 | your trust is not a * fixed trust and the relevant trust gain: (a) is made because a * CGT event happened in relation to a * CGT asset * acquired by the trustee of your trust; or (b) is referable (either directly or indirectly through one or more interposed trusts that are not fixed trusts) to a * capital gain made by the trustee of another trust that is not a fixed trust because a CGT event happened in relation to a CGT asset acquired by that trustee | the period: (a) starting on the day of that acquisition; and (b) ending on your gain day. |
3 | your trust is not a * fixed trust and the relevant trust gain is referable (either directly or indirectly through one or more interposed trusts that are not fixed trusts) to a * capital gain made by a fixed trust | the period: (a) starting on the most recent day (before your gain day) that the trust whose capital gain is directly referable to the capital gain made by the fixed trust became a beneficiary of the fixed trust; and (b) ending on your gain day. |
Note: Section 115 - 30 has special rules about when assets (including membership interests in trusts) are acquired.
Changed residency status
(3) For the purposes of this section and section 115 - 115, if:
(a) your trust is a * fixed trust and another individual owned your * membership interest in your trust 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 your membership interest in your trust when that individual, or an earlier owner of that membership interest, acquired it;
you are treated as having the same residency status on that day as that individual had on that day.