Disposal
CGT event |
Time of event |
Capital gain |
Capital loss |
|
A1 |
Disposal of a CGT asset |
when the disposal contract is entered into or, if none, when the entity stops being the asset's owner |
capital proceeds from disposal less the asset's cost base |
asset's reduced cost base less capital proceeds |
Hire purchase and similar agreements
CGT event |
Time of event |
Capital gain |
Capital loss |
|
B1 |
Use and enjoyment before title passes |
when use of the CGT asset passes |
capital proceeds less the asset's cost base |
asset's reduced cost base less capital proceeds |
End of a CGT asset
CGT event |
Time of event |
Capital gain |
Capital loss |
|
C1 |
Loss or destruction of a CGT asset |
when compensation is first received or, if none, when the loss is discovered or destruction occurred |
capital proceeds less the asset's cost base |
asset's reduced cost base less capital proceeds |
C2 |
Cancellation, surrender and similar endings |
when the contract ending an asset is entered into or, if none, when an asset ends |
capital proceeds from the ending less the asset's cost base |
asset's reduced cost base less capital proceeds |
C3 |
End of an option to acquire shares and so on |
when the option ends |
capital proceeds from granting the option less expenditure in granting it |
expenditure in granting the option less capital proceeds |
Bringing a CGT asset into existence
CGT event |
Time of event |
Capital gain |
Capital loss |
|
D1 |
Creating contractual or other rights |
when the contract is entered into or the right is created |
capital proceeds from creating the right less incidental costs of creating the right |
incidental costs of creating the right less capital proceeds |
D2 |
Granting an option |
when the option is granted |
capital proceeds from the grant less expenditure to grant it |
expenditure to grant the option less capital proceeds |
D3 |
Granting a right to income from mining |
when the contract is entered into or, if none, when the right is granted |
capital proceeds from the grant of right less the expenditure to grant it |
expenditure to grant the right less capital proceeds |
D4 |
Entering into a conservation covenant |
when covenant is entered into |
capital proceeds from covenant less cost base apportioned to the covenant |
reduce cost base apportioned to the covenant less capital proceeds from covenant |
Trusts
CGT event |
Time of event |
Capital gain |
Capital loss |
|
E1 |
Creating a trust over a CGT asset |
when the trust is created |
capital proceeds from creating the trust less the asset's cost base |
asset's reduced cost base less capital proceeds |
E2 |
Transferring a CGT asset to a trust |
when the asset is transferred |
capital proceeds from the transfer less the asset's cost base |
asset's reduced cost base less capital proceeds |
E3 |
Converting a trust to a unit trust |
when the trust is converted |
market value of the asset at that time less its cost base |
asset's reduced cost base less that market value |
E4 |
Capital payment for trust interest |
when the trustee makes the payment |
non-assessable part of the payment less the cost base of the trust interest |
no capital loss |
E5 |
Beneficiary becoming entitled to a trust asset |
when the beneficiary becomes absolutely entitled |
for a trustee - market value of the CGT asset at that time less its cost base; for a beneficiary - that market value less the cost base of the beneficiary's capital interest |
for a trustee - reduced cost base of the CGT asset at that time less that market value; for a beneficiary - reduced cost base of the beneficiary's capital interest less that market value |
E6 |
Disposal to a beneficiary to end an income right |
the time of the disposal |
for a trustee - market value of the CGT asset at that time less its cost base; for a beneficiary - that market value less the cost base of the beneficiary's right to income |
for a trustee - reduced cost base of the CGT asset at that time less that market value; for a beneficiary - reduced cost base of the beneficiary's right to income less that market value |
E7 |
Disposal to a beneficiary to end capital interest |
the time of the disposal |
for a trustee - market value of the CGT asset at that time less its cost base; for a beneficiary - that market value less the cost base of the beneficiary's capital interest |
for a trustee - reduced cost base of the CGT asset at that time less that market value; for a beneficiary - reduced cost base of the beneficiary's capital interest less that market value |
E8 |
Disposal by a beneficiary of capital interest |
when the disposal contract is entered into or, if none, when the beneficiary ceases to own the CGT asset |
capital proceeds less the appropriate proportion of the trust's net assets |
appropriate proportion of the trust's net assets less the capital proceeds |
E9 |
Creating a trust over future property |
when the entity makes an agreement |
market value of the property (as if it existed when the agreement was made) less incidental costs in making the agreement |
incidental costs in making the agreement less the market value of the property (as if it existed when the agreement was made) |
Leases
CGT event |
Time of event |
Capital gain |
Capital loss |
|
F1 |
Granting a lease |
for granting a lease - when the entity enters into the lease contract or, if none, at the start of the lease; for a lease renewal or extension - at the start of the renewal or extension |
capital proceeds less the expenditure on grant, renewal or extension |
expenditure on grant, renewal or extension less capital proceeds |
F2 |
Granting a long-term lease |
for granting a lease - when the lessor grants the lease; for a lease renewal or extension - at the start of the renewal or extension |
capital proceeds from the grant, renewal or extension less the cost base of the leased property |
reduced cost base of the leased property less the capital proceeds from the grant, renewal or extension |
F3 |
Lessor pays lessee to get lease changed |
when the lease term is varied or waived |
no capital gain |
amount of expenditure to get lessee's agreement |
F4 |
Lessee receives payment for changing a lease |
when the lease term is varied or waived |
capital proceeds less the cost base of lease |
no capital loss |
F5 |
Lessor receives payment for changing a lease |
when the lease term is varied or waived |
capital proceeds less expenditure in relation to variation or waiver |
expenditure in relation to variation or waiver less capital proceeds |
Shares
CGT event |
Time of event |
Capital gain |
Capital loss |
|
G1 |
Capital payment for shares |
when the company pays a non-assessable amount |
payment less cost base of shares |
no capital loss |
G3 |
Liquidator or administrator declares shares or financial instruments worthless |
when declaration is made |
no capital gain |
shares' or financial instruments' reduced cost base |
Special capital receipts
CGT event |
Time of event |
Capital gain |
Capital loss |
|
H1 |
Forfeiture of a deposit |
when the deposit is forfeited |
deposit less expenditure in connection with the prospective sale |
expenditure in connection with the prospective sale less deposit |
H2 |
Receipt for an event relating to a CGT asset |
when the act, transaction or event occurred |
capital proceeds less the incidental costs |
incidental costs less capital proceeds |
Cessation of residency
CGT event |
Time of event |
Capital gain |
Capital loss |
|
I1 |
Individual or company stops being an Australian resident |
when the individual or company stops being an Australian resident |
for each CGT asset the person owns, its market value less its cost base |
for each CGT asset the person owns, its reduced cost base less its market value |
I2 |
Trust stops being a resident trust |
when the trust ceases to be a resident trust for CGT purposes |
for each CGT asset the trustee owns, its market value less its cost base |
for each CGT asset the trustee owns, its reduced cost base less its market value |
Reversal of rollover
CGT event |
Time of event |
Capital gain |
Capital loss |
|
J1 |
Company stops being a member of a wholly owned group after a rollover |
when the company stops being a member of a wholly owned group after a rollover |
market value of the asset at the time of the event less its cost base |
reduced cost base of the asset less that market value |
J2 |
Change in relation to replacement asset or improved asset after a rollover under Subdivision 152-E |
when the change happens |
the amount mentioned in subsection 104-185(5) |
no capital loss |
J4 |
Trust failing to cease to exist after rollover under Subdivision 124-N |
when the failure to cease to exist happens |
for the company - market value of the asset at the time the company acquired it less its cost base at that time for a shareholder - market value of the share at the time the shareholder acquired it less its cost base at that time |
for the company - reduced cost base of the asset at the time the company acquired it less its market value at that time for a shareholder - reduced cost base of the share at the time the shareholder acquired it less its market value at that time |
J5 |
Failure to acquire replacement asset and to incur fourth element expenditure after a rollover under Subdivision 152-E |
at the end of the replacement asset period |
the amount of the capital gain that you disregarded under Subdivision 152-E |
no capital loss |
J6 |
Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gain |
at the end of the replacement asset period |
the amount mentioned in subsection 104-198(3) |
no capital loss |
Other CGT events
CGT event |
Time of event |
Capital gain |
Capital loss |
|
K2 |
Bankrupt pays an amount in relation to debt |
when payment is made |
no capital gain |
that part of the payment that relates to the denied part of a net capital loss |
K3 |
Asset passing to a tax-advantaged entity |
when an individual dies |
market value of the asset at death less its cost base |
reduced cost base of the asset less that market value |
K4 |
CGT asset starts being trading stock |
when the asset starts being trading stock |
market value of asset less its cost base |
reduced cost base of asset less that market value |
K5 |
Special capital loss from a collectable that has fallen in market value |
when CGT event A1, C2 or E8 happens to shares in the company, or an interest in the trust, that owns the collectable |
no capital gain |
market value of the shares or interest (as if the collectable had not fallen in market value) less the capital proceeds from CGT event A1, C2 or E8 |
K6 |
Pre-CGT shares or trust interest |
when another CGT event involving the shares or interest happens |
capital proceeds from the shares or trust interest that are attributable to post-CGT assets owned by the company or trust, less the assets' cost bases |
no capital loss |
K7 |
Balancing adjustment occurs for a depreciating asset that you used for purposes other than taxable purposes |
when the balancing adjustment event occurs |
termination value less cost times fraction |
cost less termination value times fraction |
K8 |
Direct value shifts affecting your equity or loan interests in a company or trust |
the decrease time for the interests |
the capital gain worked out under section 725-365 |
no capital loss |
K9 |
Entitlement to receive payment of a carried interest |
when you become entitled to receive the payment |
capital proceeds from the entitlement |
no capital loss |
K10 |
You make a forex realisation gain as a result of forex realisation event 2 and item 1 of the table in subsection 775-70(1) applies |
when the forex realisation event happens |
equal to the forex realisation gain |
no capital loss |
K11 |
You make a forex realisation loss as a result of forex realisation event 2 and item 1 of the table in subsection 775-75(1) applies |
when the forex realisation event happens |
no capital gain |
equal to the forex realisation loss |
K12 |
Foreign hybrid loss exposure adjustment |
just before the end of the income year |
no capital gain |
the amount stated in subsection 104-270(3) |
Consolidations
CGT event |
Time of event |
Capital gain |
Capital loss |
|
L1 |
Reduction under section 705-57 in tax cost setting amount of assets of entity becoming subsidiary member of consolidated group or MEC group |
just after entity becomes subsidiary member |
no capital gain |
amount of reduction |
L2 |
Amount remaining after step 3A etc of 'joining allocable cost amount is negative' |
just after entity becomes subsidiary member |
amount remaining |
no capital loss |
L3 |
Tax cost setting amounts for retained cost base assets exceed joining allocable cost amount |
just after entity becomes subsidiary member |
amount of excess |
no capital loss |
L4 |
No reset cost base assets against which to apply excess of net allocable cost amount on joining |
just after entity becomes subsidiary member |
no capital gain |
amount of excess |
L5 |
Amount remaining after step 4 of 'leaving allocable cost amount is negative' |
when entity ceases to be subsidiary member |
amount remaining |
no capital loss |
L6 |
Error in calculation of tax cost setting amount for joining entity's assets |
start of the income year when the Commissioner becomes aware of the errors |
the net overstated amount resulting from the errors, or a portion of that amount |
the net understated amount resulting from the errors, or a portion of that amount |
L7 |
Discharged amount of liability differs from amount for allocable cost amount purposes |
start of the income year in which the liability is realised |
your allocable cost amount less what it would have been had you used the correct amount for liability |
what your allocable cost amount would have been had you used the correct amount for the liability less your allocable cost amount |
L8 |
Reduction in tax cost - setting amount for reset cost base assets on joining cannot be allocated |
just after entity becomes subsidiary member |
no capital gain |
amount of reduction that cannot be allocated |