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Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

History

Pt 3-1 inserted by No 46 of 1998.

Division 118 - Exemptions  

History

Div 118 inserted by No 46 of 1998.

Subdivision 118-A - General exemptions  

Exempt or loss-denying transactions

SECTION 118-37  Compensation, damages etc.  

 ITAA 36

118-37(1)  

A *capital gain or *capital loss you make from a *CGT event relating directly to any of these is disregarded:


(a) compensation or damages you receive for:

(i) any wrong or injury you suffer in your occupation; or

(ii) any wrong, injury or illness you or your *relative suffers personally;
 View history reference


(b) compensation or damages you receive as the trustee of a trust (other than a trust that is a *complying superannuation entity) for:

(i) any wrong or injury a beneficiary of the trust suffers in his or her occupation; or

(ii) any wrong, injury or illness a beneficiary of the trust, or the beneficiary ' s relative, suffers personally;
 View history reference


(ba) a *CGT asset you receive, as a beneficiary of a trust, from the trustee of the trust to the extent that the CGT asset is attributable to compensation or damages that the trustee receives as described in paragraph (b) for:

(i) any wrong or injury you suffer in your occupation; or

(ii) any wrong, injury or illness you or your relative suffers personally;
 View history reference


(c) gambling, a game or a competition with prizes;


(d) (Repealed by No 13 of 2014)


(e) (Repealed by No 123 of 2008)
 View history reference


(f) (Repealed by No 109 of 2014)
 View history reference


(g) a tobacco industry exit grant that you receive under the program known as the Tobacco Growers Adjustment Assistance Programme 2006 if, as a condition of receiving the grant, you entered into an undertaking not to become the owner or operator of any agricultural *enterprise within 5 years after receiving the grant;
 View history reference


(ga) a * water entitlement, to the extent that the CGT event happens because an entity * derives a * SRWUIP payment that is * non-assessable non-exempt income under section 59-65 ;
 View history reference


(gb) a * SRWUIP payment you derive that is non-assessable non-exempt income under section 59-65 ;
 View history reference


(h) a right or entitlement to a *tax offset, a *deduction, or a similar benefit under an *Australian law, a *foreign law or a law of part of a foreign country;
 View history reference


(i) a variation, transfer or revocation of an allocation (within the meaning of the National Rental Affordability Scheme Act 2008 );
 View history reference


(j) anything of economic value provided to you (whether directly or indirectly, such as through an *NRAS consortium of which you are a *member) by:

(i) a Department of a State or Territory; or

(ii) a body (whether incorporated or not) established for a public purpose by or under a law of a State or Territory;
in relation to your participation in the *National Rental Affordability Scheme.
 View history reference

History

S 118-37(1) amended by No 21 of 2015, s 3 and Sch 3 item 3, by substituting para (a) and (b) and inserting para (ba), applicable in relation to CGT events happening in the 2005-06 income year and later income years. Para (a) and (b) formerly read:


(a) compensation or damages you receive for any wrong or injury you suffer in your occupation;


(b) compensation or damages you receive for any wrong, injury or illness you or your *relative suffers personally;

S 118-37(1) amended by No 109 of 2014, s 3 and Sch 10 item 26, by repealing para (f), effective 17 October 2014. For transitional provision see note under s 15-65 . Para (f) formerly read:


(f) a sugar industry exit grant that you receive under the program known as the Sugar Industry Reform Program;

S 118-37(1) amended by No 13 of 2014, s 3 and Sch 2 item 46, by repealing para (d), applicable in relation to payments made after 1 July 2014, other than any such payment that relates to a day before 1 July 2014. Para (d) formerly read:


(d) a re-establishment grant under section 52A of the Farm Household Support Act 1992 ;

S 118-37(1) amended by No 88 of 2013, s 3 and Sch 3 item 11, by inserting para (ga) and (gb), applicable in relation to payments made on or after 1 April 2010 by the Commonwealth under a SRWUIP program.

S 118-37(1) amended by No 62 of 2011, s 3 and Sch 3 item 12, by substituting " *National Rental Affordability Scheme " for " National Rental Affordability Scheme " in para (j), effective 29 June 2011.

S 118-37(1) amended by No 62 of 2011, s 3 and Sch 3 item 9, by inserting " (whether directly or indirectly, such as through an *NRAS consortium of which you are a *member) " in para (j), applicable to assessments for: (a) the 2008-09 income year; and (b) later income years.

S 118-37(1) amended by No 42 of 2009, s 3 and Sch 3 item 1, by substituting para (h), applicable in relation to a CGT event happening in: (a) the 2009-10 income year; or (b) a later income year. Para (h) formerly read:


(h) an incentive (within the meaning of the National Rental Affordability Scheme Act 2008 ) you claim under this Act;

S 118-37(1) amended by No 130 of 2008, s 3 and Sch 1 item 6, by inserting paras (h), (i) and (j) at the end, applicable to assessments for the 2008-09 income year and later income years.

S 118-37(1) amended by No 123 of 2008, s 3 and Sch 3 item 1, by repealing para (e), applicable in relation to the 2009-2010 income year and later income years. Para (e) formerly read:


(e) a dairy exit payment within the meaning of the Farm Household Support Act 1992 ;

S 118-37(1) amended by No 38 of 2008 , s 3 and Sch 10 item 4, by inserting para (g) at the end, applicable to tobacco industry exit grants received in the 2006-07 income year and later income years.

S 118-37(1) amended by No 20 of 2004 and No 22 of 2000.

118-37(2)  

 View history reference
A *capital gain or *capital loss is disregarded if you make it as a result of receiving a payment or property as reimbursement or payment of your expenses, or receiving or using a voucher or certificate, under:


(a) a scheme established by an *Australian government agency, a *local governing body or a *foreign government agency under an enactment or an instrument of a legislative character; or
 View history reference


(b) the General Practice Rural Incentives Program or the Rural and Remote General Practice Program; or


(c) the Sydney Aircraft Noise Insulation Project; or


(d) the M4/M5 Cashback Scheme; or


(e) the Unlawful Termination Assistance Scheme or the Alternative Dispute Resolution Assistance Scheme.

History

S 118-37(2) substituted by No 80 of 2006 , s 3 and Sch 5 item 1, applicable to assessments for the 2005-06 income year and later income years. S 118-37(2) formerly read:


118-37(2) A *capital gain you make as a result of receiving an amount as reimbursement or payment of your expenses under one of these schemes is disregarded:


(a) the General Practice Rural Incentives Program or the Rural and Remote General Practice Program;


(b) the Sydney Aircraft Noise Insulation Project;


(c) the M4/M5 Cashback Scheme.

S 118-37(2) amended by No 114 of 2000.

118-37(3)  

 View history reference
A *capital gain you make from compensation you receive under the *firearms surrender arrangements is disregarded.

History

S 118-37(3) inserted by No 114 of 2000.

118-37(4)  

 View history reference
A *capital gain or *capital loss you make from a payment you receive is disregarded if:


(a) you are an Australian resident; and
 View history reference


(b) you receive the payment:


(i) under the program known as the " German Forced Labour Compensation Programme " ; and

(ii) from the Foundation known as " Remembrance, Responsibility and Future " or any of the Foundation ' s partner organisations; and


(c) the payment is in the nature of compensation for:


(i) any wrong or injury; or

(ii) any loss of, or damage to, property;
that you, or another person, suffered as a result of injustices committed during the National Socialist period.

History

S 118-37(4) amended by No 41 of 2005 and inserted by No 12 of 2003.

118-37(5)  

 View history reference
A *capital gain or *capital loss you make as a result of receiving a payment or property is disregarded if:


(a) you are an individual who is an Australian resident; and


(b) you receive the payment or property from a source in a foreign country; and


(c) you do not receive the payment or property directly or indirectly from an *associate of yours; and


(d) the payment or property you receive is in connection with:


(i) any wrong or injury; or

(ii) any loss of, or damage to, property; or

(iii) any other detriment;
that you, or another individual, suffered as a result of:

(iv) persecution by the National Socialist regime of Germany during the National Socialist period; or

(v) persecution by any other enemy of the Commonwealth during the Second World War; or

(vi) persecution by an enemy-associated regime during the Second World War; or

(vii) flight from persecution mentioned in subparagraph (iv), (v) or (vi); or

(viii) participation in a resistance movement during the Second World War against forces of the National Socialist regime of Germany; or

(ix) participation in a resistance movement during the Second World War against forces of any other enemy of the Commonwealth.

History

S 118-37(5) inserted by No 101 of 2004.

118-37(6)  

 View history reference
For the purposes of subsection (5), the duration of the Second World War includes:


(a) the period immediately before the Second World War; and


(b) the period immediately after the Second World War.

History

S 118-37(6) inserted by No 101 of 2004.

118-37(7)  

 View history reference
For the purposes of subsection (5), a regime is an enemy-associated regime if, and only if, it was:


(a) in alliance with; or


(b) occupied by; or


(c) effectively controlled by; or


(d) under duress from; or


(e) surrounded by;

either or both of the following:


(f) the National Socialist regime of Germany;


(g) any other enemy of the Commonwealth.

History

S 118-37(7) inserted by No 101 of 2004.

118-37(8)  

 View history reference
Subsection (5) applies to a payment or property received by the *legal personal representative of an individual in a corresponding way to the way in which that subsection would have applied if the payment or property had been received by the individual.

History

S 118-37(8) inserted by No 101 of 2004.

118-37(9)  

 View history reference
Subsection (5) applies to a payment or property received by:


(a) the *legal personal representative of a deceased individual; or


(b) the trustee of a trust established by the will of a deceased individual;

in a corresponding way to the way in which that subsection would have applied if:


(c) the individual had not died; and


(d) the payment or property had been received by the individual.

History

S 118-37(9) inserted by No 101 of 2004.

S 118-37 inserted by No 94 of 1999.


 



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