INCOME TAX ASSESSMENT ACT 1997
|CHAPTER 3 - SPECIALIST LIABILITY RULES
|PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Pt 3-1 inserted by No 46 of 1998.
Div 115 inserted by No 169 of 1999.
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
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
ends after 8 May 2012; and
(ii) ending on the day the CGT event happens;
(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.
Section 115-30 has special rules about when assets are acquired.
Changed residency status
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.
S 115-105 inserted by No 124 of 2013, s 3 and Sch 7 item 6, effective 29 June 2013.