INCOME TAX ASSESSMENT ACT 1997 - SECT 152.305 Choosing the exemption
INCOME TAX ASSESSMENT ACT 1997 - SECT 152.305
Choosing the exemption(1) If you are an individual, you can choose to disregard all or part of a * capital gain if:
(a) the basic conditions in Subdivision 152 - A are satisfied for the gain; and
(b) if you are under 55 just before you make the choice--you contribute an amount equal to the asset's * CGT exempt amount to a * complying superannuation fund or an * RSA; and
Note: For the non - deductibility of the contribution, see subsection 290 - 150(4).
(i) if the relevant CGT event is CGT event J2, J5 or J6--when you made the choice; or
(ii) otherwise--at the later of when you made the choice and when you received the proceeds.
Note 1: Section 103 - 25 tells you when the choice must be made.
(1A) If you receive the * capital proceeds from the * CGT event in instalments, paragraphs (1)(b) and (c) apply to each instalment in succession (up to the asset's * CGT exempt amount).
(1B) For the purposes of (but without limiting) subsection (1A), you are treated as receiving the * capital proceeds in instalments if:
(a) the * CGT event happened because you * disposed of the * CGT asset; and
(b) the capital proceeds from the disposal are increased by one or more * financial benefits that you receive under a * look - through earnout right.
(2) A company or a trust (except a public entity--see subsection (3)) can also choose to disregard such an amount if:
(a) the basic conditions in Subdivision 152 - A are satisfied for the * capital gain; and
(b) the entity satisfies the significant individual test (see section 152 - 50); and
(c) the company or trust conditions in section 152 - 325 are satisfied.
Note: Section 103 - 25 tells you when the choice must be made.
(3) Entities of a kind referred to in subsection 328 - 125(8) cannot make the choice.
(4) Paragraphs (1)(a) and (2)(a) do not apply if the *
capital gain arose from * CGT event J5 or J6.