Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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.