Income Tax Assessment Act 1997

In addition to its application under subsection 115‑210(1), Subdivision 115‑C applies as set out in this section if:

a trust estate has one or more *capital gains that have been worked out using a *cost base that includes indexation because of subsection 110‑36(1A); and

that Subdivision does not apply under subsection 115‑210(1) in relation to the trust estate for an income year; and

that Subdivision would so apply if, in working out whether the trust estate has a *net capital gain for the income year, the following assumptions applied in relation to each of those capital gains:

in working out the amount of the capital gain before any reductions under the method statement in subsection 102‑5(1) were applied, the *cost base was adjusted to remove the effect of indexation on its calculation;

the assumption in subparagraph (i) did not result in any changes to the application of *capital losses, previously unapplied *net capital losses or quarantined amounts (including how much of each of those was applied) under that method statement to reduce the capital gain.

Subdivision 115‑C applies under this section as follows in relation to such a *capital gain of the trust estate (the trust gain):

that Subdivision applies for the purposes of treating a beneficiary of the trust estate as having a related capital gain under subsection 115‑215(3) in circumstances where subsection 115‑225(5) would apply for working out the amount of the trust gain;

if paragraph (a) applies—section 115‑235 applies for such a related capital gain;

that Subdivision applies for the purposes of increasing the trustee’s assessable amount under subsection 115‑220(2) or 115‑222(4) in circumstances where subsection 115‑225(5) would apply for working out the amount of the trust gain.

The reference to the trust estate’s net income in subsection 115‑215(1) does not limit the application of section 115‑215 for those purposes.

To avoid doubt, subsection 115‑210(2) applies in relation to the application of Subdivision 115‑C under this section.

To avoid doubt, a reference in a *taxation law to Subdivision 115‑C or a provision of that Subdivision includes a reference to that Subdivision, or that provision (as the case requires), as it applies because of this section.