In this section:
- Appendix 1: Summary of CGT events
- Appendix 2: Consumer price index (CPI)
- Appendix 3: Flowcharts
- Appendix 4: Definitions
- Appendix 5: Abbreviations
Appendix 1 Summary of CGT events
Disposal
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
A1 Disposal of a CGT asset |
When the disposal contract is entered into |
The capital proceeds from disposal |
The asset’s reduced cost base |
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 |
The capital proceeds |
The asset’s reduced cost base |
End of a CGT asset
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
C1 Loss or destruction of |
When compensation is first received |
The capital proceeds |
The asset’s reduced cost base |
C2 Cancellation, surrender and similar endings |
When the contract ending an asset is entered into |
The capital proceeds from the ending |
The asset’s reduced cost base |
C3 End of an option to acquire shares and so on |
When the option ends |
The capital proceeds from granting the option |
The expenditure in granting the option |
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 |
The capital proceeds from creating the right |
The incidental costs of creating the right |
D2 Granting an option |
When the option is granted |
The capital proceeds from the grant |
The expenditure to grant the option |
D3 Granting a right to income from mining |
When the contract is entered into |
The capital proceeds from the grant of right |
The expenditure to grant the right |
D4 Entering into a conservation covenant |
When covenant is entered into |
The capital proceeds from covenant |
The reduced cost base apportioned to the covenant less |
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 |
The asset’s reduced cost base |
E2 Transferring a CGT asset to a trust |
When the asset is transferred |
Capital proceeds from the transfer |
The asset’s reduced cost base |
E3 Converting a trust to a unit trust |
When the trust is converted |
Market value of the asset at that time |
The asset’s reduced cost base |
E4 Capital payment for trust interest |
When the trustee makes the payment |
Non-assessable part of the payment less |
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 |
For a trustee, |
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 |
For a trustee, |
E7 Disposal to a beneficiary to end capital interest |
The time of the disposal |
For a trustee, For a beneficiary, that market value |
For a trustee, For a beneficiary, |
E8 Disposal by a beneficiary of capital interest |
When the disposal contract is entered into or, if none, |
Capital proceeds |
The appropriate proportion of the trust’s net assets |
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) |
The incidental costs in making the agreement |
E10 Annual cost base reduction exceeds cost base of interest in AMIT |
When reduction happens |
Excess of cost base reduction over cost base |
No capital loss |
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 |
Expenditure on grant, renewal or extension |
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 |
Reduced cost base of the leased property |
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 |
No capital loss |
F5 Lessor receives payment for changing a lease |
When the lease term is varied or waived |
Capital proceeds less |
Expenditure for variation or waiver |
Shares
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
When the company pays a non-assessable amount |
Payment |
No capital loss |
|
G3 Liquidator or administrator declares shares or financial instruments worthless |
When declaration is made |
No capital gain |
Reduced cost base of shares |
Special capital receipts
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
H1 Forfeiture of a deposit |
When the deposit is forfeited |
Deposit |
Expenditure in Connection with the prospective sale |
H2 Receipt for an event relating to a CGT asset |
When the act, transaction or event occurred |
Capital proceeds |
Incidental costs |
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 |
For each CGT asset the person owns, its reduced cost base |
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 |
For each CGT asset the trustee owns, its reduced cost base |
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 |
Reduced cost base of the asset less that market value |
J2 Change for replacement asset or improved asset after a rollover under Subdivision 152-E |
when the change happens |
The amount mentioned in subsection |
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 a company, market value of the asset at the time the company acquired it For a shareholder, market value of the share at the time the shareholder acquired it |
For a company, reduced cost base of the asset at the time the company acquired it For a shareholder, reduced cost base of the share at the time the shareholder acquired it |
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 |
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 |
No capital loss |
Other CGT events
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 |
The net understated amount resulting from the errors, or |
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 |