INCOME TAX ASSESSMENT ACT 1997 - SECT 152.205 You get the small business 50% reduction

INCOME TAX ASSESSMENT ACT 1997 - SECT 152.205

    The amount of a * capital gain remaining after applying step 3 of the method statement in subsection   102 - 5(1) is reduced by 50%, if the basic conditions in Subdivision   152 - A are satisfied for the gain.

Example:   For an individual (other than one who opts to claim indexation instead of the discount), the discount percentage that applies under step 3 of the method statement is 50%. Therefore, the combined effect of the discount percentage and this section would be to reduce the original capital gain by a total of 75%.

  For an individual who opts to claim indexation, or a company, there is no discount percentage, so the individual or company would simply get the 50% reduction under this section.