Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 100 - A Guide to capital gains and losses  

Step 1 - Have you made a capital gain or a capital loss?  

SECTION 100-30   Does an exception or exemption apply?  

100-30(1)    
Once you identify a CGT event which applies to you, you need to know if there is an exception or exemption that would reduce the capital gain or loss or allow you to disregard it.

100-30(2)    

There are 4 categories of exemptions:

1. exempt assets: for example, cars;

2. exempt or loss-denying transactions: for example, compensation for personal injury or your tenancy comes to an end;

3. anti-overlap provisions (that reduce your capital gain by the amount that is otherwise assessable);

4. small business relief.

Note:

Most of the exceptions are in Division 104 . You will find most of the possible exemptions in Division 118 . The small business relief provisions are in Division 152 .

Some exemptions are limited

100-30(3)    
Take the family home for example. Generally, you are exempt from CGT when you make a capital gain on disposing of your main residence.

But this can change depending on how you came to own the house and what you have done with it. For example, if you rent it out, you may be liable to CGT when you sell it.

For the limits on the general exemption of your main residence: see Subdivision 118-B .