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INCOME TAX ASSESSMENT ACT 1997 - SECT 100.20

What events attract CGT?

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

  (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

  (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.


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