57DCapital gains tax

##### 57D Capital gains tax (1) If: (a) the Corporation owned a CGT asset at the end of 30 June 1991 (the changeover time); and (b) the asset’s market value at that time was greater than what would have been, for the purposes of Part IIIA of the Income Tax Assessment Act 1936, the asset’s indexed cost base for the Corporation if the Corporation had disposed of it at that time; then, for the purposes of working out whether the Corporation makes a capital gain from a later CGT event that happens in relation to the asset, Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 apply as if the Corporation: (c) had disposed of the asset at the changeover time for an amount equal to that indexed cost base; and (d) had immediately re‑acquired it for an amount equal to its market value at the changeover time. (2) If: (a) the Corporation owned a CGT asset at the end of 30 June 1991 (the changeover time); and (b) the asset’s market value at that time was less than what would have been, for the purposes of Part IIIA of the Income Tax Assessment Act 1936, the asset’s reduced cost base for the Corporation if the Corporation had disposed of it at that time; then, for the purposes of working out whether the Corporation makes a capital loss from a later CGT event that happens in relation to the asset, Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 apply as if the Corporation: (c) had disposed of the asset at the changeover time for an amount equal to that reduced cost base; and (d) had immediately re‑acquired it for an amount equal to its market value at the changeover time. (3) A capital gain or capital loss is disregarded if it arises from a CGT event that happens in relation to a CGT asset of the Corporation and: (a) the Commonwealth acquired the asset before 20 September 1985; or (b) the Commonwealth and not the Corporation is entitled to the capital proceeds from the event. (4) An expression has the same meaning in this section as in the Income Tax Assessment Act 1997, except so far as the contrary intention appears in this Act.