115-125   Investors disposing of property used for affordable housing

Object

             (1)  The object of this section is to increase the discount percentage to the extent that the * discount capital gain relates to a * dwelling used to * provide affordable housing.

When this section applies

             (2)  This section applies to a * discount capital gain if:

                     (a)  you are an individual; and

                     (b)  either:

                              (i)  you make the discount capital gain from a * CGT event happening in relation to a * CGT asset that is your * ownership interest in a * dwelling; or

                             (ii)  because of section 115-215, Division 102 applies to you as if you had made the discount capital gain for a * capital gain of a trust covered by subsection (3); and

                     (c)  where subparagraph (b)(ii) applies—the trust’s capital gain was made directly, or indirectly through one or more entities that are all covered by subsection (3), from a CGT event happening in relation to a CGT asset that is an ownership interest in a dwelling; and

                     (d)  the dwelling was used to * provide affordable housing on at least 1095 days:

                              (i)  before the CGT event; and

                             (ii)  during your, or the relevant trustee’s or partner’s, * ownership period of that dwelling; and

                            (iii)  on or after 1 January 2018.

The days mentioned in paragraph (d) need not be consecutive.

Note:          1095 days is the same as 3 years.

             (3)  This subsection covers the following:

                     (a)  a trust, other than a * superannuation fund or a public unit trust (within the meaning of section 102P of the Income Tax Assessment Act 1936 );

                     (b)  a * managed investment trust;

                     (c)  a partnership.

Discount percentage

             (4)  The percentage resulting from this section is the sum of:

                     (a)  the * discount percentage that would apply to the * discount capital gain apart from this section; and

                     (b)  the result (expressed as a percentage) of subsection (5).

             (5)  Work out the following:

where:

affordable housing days means the number of days during that * ownership period (see paragraph (2)(d)) of the * dwelling, and on or after 1 January 2018, on which:

                     (a)  the dwelling was used to * provide affordable housing; and

                     (b)  you were neither a foreign resident nor a * temporary resident.

total ownership days means the number of days during that * ownership period (see paragraph (2)(d)) of the * dwelling, less the number of days after 8 May 2012 during that ownership period that you were a foreign resident or a * temporary resident.

3  Application of amendments

Section 115-125 of the Income Tax Assessment Act 1997 (as added by this Schedule) applies in relation to CGT events happening on or after 1 January 2018.