Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 115.125

Object

  (1)   The object of this section is to increase the discount percentage to the extent that the * discount capital gain relates to a * dwelling used to * provide affordable housing.

When this section applies

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

  (a)   you are an individual; and

  (b)   either:

  (i)   you make the discount capital gain from a * CGT event happening in relation to a * CGT asset that is your * ownership interest in a * dwelling; or

  (ii)   because of section   115 - 215, Division   102 applies to you as if you had made the discount capital gain for a * capital gain of a trust covered by subsection   (3); and

  (c)   where subparagraph   (b)(ii) applies--the trust's capital gain was made directly, or indirectly through one or more entities that are all covered by subsection   (3), from a CGT event happening in relation to a CGT asset that is an ownership interest in a dwelling; and

  (d)   the dwelling was used to * provide affordable housing on at least 1095 days:

  (i)   before the CGT event; and

  (ii)   during your, or the relevant trustee's or partner's, * ownership period of that dwelling; and

  (iii)   on or after 1   January 2018.

The days mentioned in paragraph   (d) need not be consecutive.

Note:   1095 days is the same as 3 years.

  (3)   This subsection covers the following:

  (a)   a trust, other than a * superannuation fund or a public unit trust (within the meaning of section   102P of the Income Tax Assessment Act 1936 );

  (b)   a * managed investment trust;

  (c)   a partnership.

Discount percentage

  (4)   The percentage resulting from this section is the sum of:

  (a)   the * discount percentage that would apply to the * discount capital gain apart from this section; and

  (b)   the result (expressed as a percentage) of subsection   (5).

  (5)   Work out the following:

where:

"affordable housing days" means the number of days during that * ownership period (see paragraph   (2)(d)) of the * dwelling, and on or after 1   January 2018, on which:

  (a)   the dwelling was used to * provide affordable housing; and

  (b)   you were neither a foreign resident nor a * temporary resident.

"total ownership days" means the number of days during that * ownership period (see paragraph   (2)(d)) of the * dwelling, less the number of days after 8   May 2012 during that ownership period that you were a foreign resident or a * temporary resident.