Commonwealth Consolidated Acts Commonwealth Consolidated Acts
CGT events | |||
Event number and description |
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A1 Disposal of a CGT asset | when disposal contract is entered into or, if none, when entity stops being asset's owner | capital proceeds from disposal less asset's cost base | asset's reduced cost base less capital proceeds |
B1 Use and enjoyment
before title passes | when use of CGT asset passes | capital proceeds less asset's cost base | asset's reduced cost base less capital proceeds |
C1 Loss or destruction of a CGT asset | when compensation is first received or, if none, when loss discovered or destruction occurred | capital proceeds less asset's cost base | asset's reduced cost base less capital proceeds |
C2 Cancellation, surrender and similar
endings | when contract ending asset is entered into or, if none, when asset ends | capital proceeds from ending less asset's cost base | asset's reduced cost base less capital proceeds |
C3
End of option to acquire shares etc. | when option ends | capital proceeds from granting option less expenditure in granting it | expenditure in granting option less capital proceeds |
D1 Creating contractual
or other rights | when contract is entered into or right is created | capital proceeds from creating right less incidental costs of creating it | incidental costs of creating right less capital proceeds |
D2
Granting an option | when option is granted | capital proceeds from grant less expenditure to grant it | expenditure to grant option less capital proceeds |
D3 Granting a right to income from mining | when contract is entered into or, if none, when right is granted | capital proceeds from grant of right less expenditure to grant it | expenditure to grant right less capital proceeds |
D4 Entering into a
conservation covenant | when covenant is entered into | capital proceeds from covenant less cost base apportioned to the covenant | reduced cost base apportioned to the covenant less capital proceeds from covenant |
when trust is created | capital proceeds from creating trust less asset's cost base | asset's reduced cost base less capital proceeds | |
E2 Transferring
a CGT asset to a trust | when asset transferred | capital proceeds from transfer less asset's cost base | asset's reduced cost base less capital proceeds |
E3 Converting a trust to a unit trust
| when trust is converted | market value of asset at that time less its cost base | asset's reduced cost base less that market value |
E4 Capital payment for trust interest | non - assessable part of the payment less cost base of the trust interest | no capital loss | |
E5 Beneficiary becoming entitled to
a trust asset | when beneficiary becomes absolutely entitled | for trustee--market value of CGT asset at that time less
its cost base; | for trustee--reduced cost base of CGT asset
at that time less that market value; |
E6 Disposal to
beneficiary to end income right | the time of the disposal | for trustee--market value of CGT asset at that time less its cost
base; | for trustee--reduced cost base of CGT asset at that time less
that market value; |
E7 Disposal to beneficiary to end
capital interest | the time of the disposal | for
trustee--market value of CGT asset at that time less its cost base; | for trustee--reduced cost base of CGT asset at that time less that
market value; |
E8 Disposal by beneficiary of capital interest
| when disposal contract entered into or, if none, when beneficiary ceases to own CGT asset | capital proceeds less appropriate proportion of the trust's net assets | appropriate proportion of the trust's net assets less capital proceeds |
E9 Creating a trust over future
property | when entity makes agreement | market value of the property (as if it existed when agreement made) less incidental costs in making agreement | incidental costs in making agreement less market value of the property (as if it existed when agreement made) |
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 |
F1 Granting a lease | for
grant of lease--when entity enters into lease contract or, if none, at start
of lease; | capital proceeds less expenditure on grant, renewal or extension | expenditure on grant, renewal or extension less capital proceeds |
F2 Granting a long term
lease | for grant of lease--when lessor
grants lease; | capital proceeds from grant, renewal or extension less cost base of leased property | reduced cost base of leased property less capital proceeds from grant, renewal or extension |
F3 Lessor pays lessee to get lease changed | when lease term is varied or waived | no capital gain | amount of expenditure to get lessee's agreement |
F4 Lessee receives payment
for changing lease | when lease term is varied or waived | capital proceeds less cost base of lease | no capital loss |
F5 Lessor
receives payment for changing lease | when lease term is varied or waived | capital proceeds less expenditure in relation to variation or waiver | expenditure in relation to variation or waiver less capital proceeds |
when company pays non - assessable amount | no capital loss | ||
G3 Liquidator or administrator declares shares or financial
instruments worthless | when declaration was made | no capital gain | shares' or financial instruments' reduced cost base |
H1
Forfeiture of a deposit | when deposit is forfeited | deposit less expenditure in connection with prospective sale | expenditure in connection with prospective sale less deposit |
H2 Receipt for
event relating to a CGT asset | when act, transaction or event occurred | capital proceeds less incidental costs | incidental costs less capital proceeds |
I1 Individual or company stops being an
Australian resident | when individual or company stops being Australian resident | for each CGT asset the person owns, its market value less its cost base | for each CGT asset the person owns, its reduced cost base less its market value |
I2 Trust stops being a resident trust
| when trust ceases to be resident trust for CGT purposes | for each CGT asset the trustee owns, its market value of asset less its cost base | for each CGT asset the trustee owns, its reduced cost base less its market value |
J1 Company stops being member of
wholly - owned group after roll - over | when the company stops | market value of asset at time of event less its cost base | reduced cost base of asset less that market value |
J2 Change in relation to replacement asset or improved asset after a roll - over under Subdivision 152 - E [See section 104 - 185] | when the change happens | the amount mentioned in subsection 104 - 185(5) | no capital loss |
J4 Trust fails to cease to exist after a roll - over under Subdivision 124 - N [See section 104 - 195] | when the failure happens | market value of asset less asset's cost base | reduced cost base of asset less asset's market value |
J5 Failure to acquire replacement asset and to incur fourth element expenditure after a roll - over under Subdivision 152 - E [See section 104 - 197] | at the end of the replacement asset period | the amount of the capital gain that you disregarded under Subdivision 152 - E | 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 [See section 104 - 198] | at the end of the replacement asset period | the amount mentioned in subsection 104 - 198(3) | no capital loss |
K1 As the result of an incoming international transfer of a Kyoto unit or an Australian carbon credit unit from your foreign account or your nominee's foreign account, you start to hold the unit as a registered emissions unit [See section 104 - 205] | when you start to hold the unit as a registered emissions unit | market value of unit less its cost base | reduced cost base of unit less its market value |
K2 Bankrupt pays
amount in relation to debt | when payment is made | no capital gain | so much of payment as relates to denied part of a net capital loss |
K3 Asset passing to tax - advantaged entity | when individual dies | market value of asset at death less its cost base | reduced cost base of asset less that market value |
K4 CGT asset
starts being trading stock | when asset starts being trading stock | market value of asset less its cost base | reduced cost base of asset less its market value |
K5 Special capital loss from collectable that
has fallen in market value | when CGT event A1, C2 or E8 happens to shares in the company, or an interest in the trust, that owns the collectable | no capital gain | market value of the shares or interest (as if the collectable had not fallen in market value) less the capital proceeds from CGT event A1, C2 or E8 |
K6 Pre - CGT shares or trust interest
| when another CGT event involving the shares or interest happens | capital proceeds from the shares or trust interest (so far as attributable to post - CGT assets owned by the company or trust) less the assets' cost bases | no capital loss |
K7 Balancing adjustment occurs for a
depreciating asset that you used for purposes other than taxable purposes | When balancing adjustment event occurs | Termination value less cost times fraction | Cost less termination value times fraction |
K8 Direct value shifts affecting your equity or loan interests in a company or trust [See section 104 - 250 and Division 725] | the decrease time for the interests | the gain worked out under section 725 - 365 | no capital loss |
K9 Entitlement to receive payment of a carried interest [See section 104 - 255] | when you become entitled to receive payment | capital proceeds from entitlement | no capital loss |
K10 You make a forex realisation gain covered by item 1 of the table in subsection 775 - 70(1) [See section 104 - 260] | when the forex realisation event happens | no capital loss | |
K11 You make a forex realisation loss covered by item 1 of the table in subsection 775 - 75(1) [See section 104 - 265] | when the forex realisation event happens | no capital gain | |
K12 Foreign hybrid loss exposure adjustment [See section 104 - 270] | just before the end of the income year | no capital gain | the amount stated in subsection 104 - 270(3) |
L1 Reduction under section 705 - 57 in tax cost setting amount of assets of entity becoming subsidiary member of consolidated group or MEC group [See section 104 - 500] | 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 [See section 104 - 505] | 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 [See section 104 - 510] | 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 [See section 104 - 515] | 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 [See section 104 - 520] | 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: CGT event L6 [See section 104 - 525] | start of the income year when the Commissioner becomes aware of the errors | the net overstated amount resulting from the errors, or a portion of that amount | the net understated amount resulting from the errors, or a portion of that amount |
L8 Reduction in tax cost setting amount for reset cost base assets on joining cannot be allocated [See section 104 - 535] | Just after entity becomes subsidiary member | no capital gain | amount of reduction that cannot be allocated |
Note: Subsection 230 - 310(4) (which deals with hedging financial arrangements) provides that in certain circumstances a CGT event is taken to have occurred in relation to a hedging financial arrangement at the same time as a CGT event actually occurs in relation to a hedged item covered by the arrangement.