Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 4) 1986 No. 154 of 1986 - SECT 37

37. Section 160ZZQ of the Principal Act is amended-

   (a)  by inserting after sub-section (13) the following sub-section:

"(13A) Subject to sub-section (21), where-

   (a)  a dwelling owned by a taxpayer, being a natural person who acquired
        the dwelling as a beneficiary in the estate of a deceased person, is
        disposed of;

   (b)  the dwelling was, throughout the period from the death of the deceased
        person to the disposal of the dwelling, the sole or principal
        residence of the taxpayer; and

   (c)  if the dwelling was acquired by the deceased person after 19 September
        1985-the dwelling was, throughout the period during which the dwelling
        was owned by the deceased person, the sole or principal residence of
        the deceased person,
a capital gain shall not be deemed to have accrued to the taxpayer, and a
capital loss shall not be deemed to have been incurred by the taxpayer, as the
case requires, in respect of the disposal of the dwelling.";

   (b)  by inserting after sub-section (17) the following sub-section:

"(17A) Subject to sub-section (21), where-

   (a)  a dwelling owned by a taxpayer referred to in paragraph (13A) (a) is
        disposed of after 12 months after the date of the death of the
        deceased person;

   (b)  either or both of the following sub-paragraphs is or are applicable:

        (i)    the dwelling was the sole or principal residence of the
               taxpayer during part only of the period referred to in
               paragraph (13A) (b);

        (ii)   in a case to which paragraph (13A) (c) applies-the dwelling was
               the sole or principal residence of the deceased person referred
               to in that paragraph during part only of the period referred to
               in that paragraph; and

   (c)  but for this section and sub-section 160ZA (1), a capital gain would
        have accrued to the taxpayer, or the taxpayer would have incurred a
        capital loss, in respect of the disposal,
a capital gain shall be deemed to have accrued to the taxpayer, or the
taxpayer shall be deemed to have incurred a capital loss, as the case may be,
in respect of the disposal of the dwelling, of an amount calculated in
accordance with the formula AB, where-
---
C
A is the amount of the capital gain or of the capital loss, as the case may
be, referred to in paragraph (c);
B is-

   (d)  in a case to which sub-paragraph (b) (i) applies-the number of days in
        the part of the period referred to in that sub-paragraph during which
        the dwelling was not the sole or principal residence of the taxpayer;

   (e)  in a case to which sub-paragraph (b) (ii) applies-the number of days
        in the part of the period referred to in that sub-paragraph during
        which the dwelling was not the sole or principal residence of the
        deceased person; or

   (f)  in a case to which both of sub-paragraphs (b) (i) and (ii) apply-the
        sum of the numbers of days referred to in paragraphs (d) and (e); and
C is-

   (g)  in a case where the dwelling was acquired by the deceased person
        before 20 September 1985-the number of days in the period from and
        including the date of the death of the deceased person to and
        including the day immediately before the date of the disposal; or

   (h)  in a case where the dwelling was acquired by the deceased person on or
        after 20 September 1985-the number of days in the period from and
        including the date on which the dwelling was acquired by the deceased
        person to and including the day immediately before the date of
        disposal.";
(c) by inserting in paragraph (21) (b) "(13A)," after "(13),"; and
(d) by inserting in paragraph (21) (b) "(17A)," after "(17),".