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 100-20   What events attract CGT?  

100-20(1)    
You can make a capital gain or loss only if a CGT event happens.

100-20(2)    
There are a wide range of CGT events. Some happen often and affect many different taxpayers. Others are rare and affect only a few.

Some examples of CGT events
Situation	Event	Which CGT event?
You own shares you acquired on or after 20 September 1985	You sell them	CGT event A1
.
You sell a business	You agree with the purchaser not to operate a similar business in the same area	CGT event D1
.
You are a lessor	You receive a payment for changing the lease	CGT event F5
.
You own shares in a company	The company makes a payment (not a dividend) to you as a shareholder	CGT event G1

A summary of all the CGT events is in section 104-5 .

Identifying the time of a CGT event

100-20(3)    
The specific time when a CGT event happens is important for various reasons: in particular, for working out whether a capital gain or loss from the event affects your income tax for the current or another income year.

If a CGT event involves a contract, the time of the event will often be when the contract is made , not when it is completed.

The time of each CGT event is explained early in the relevant section in Division 104 .