CGT Articles

CGT Event D1 CGT event D1 will happen to a taxpayer if contractual or other legal or equitable rights are created in another entity. The rules relating to this event are contained primarily in section 104-35 of the Income Tax Assessment Act of 1997. The CGT event...

Foreign Exchange Gains and Losses  A taxpayer may make a windfall gain or loss due to fluctuations in exchange rates between the time the tax law recognises an amount and the time of realisation or receipt or payment of an amount. The amount of the gain or loss...

What is CGT Event E4?   CGT event E4 establishes a trigger for capital gains tax in a situation where a payment is made by the trustee of a trust to a beneficiary of that trust (in respect of an interest that beneficiary holds in the trust) where any part of that...

The tax consequences of creating a life interest and a right to reside are set out in Taxation Ruling 2006/14. In respect of life interests, it is worth understanding from the outset that there are two distinct forms of life interests: equitable and legal. An...

The scrip for scrip rollover is designed to enable the exchange of shares in a company or units in a trust for other shares or units without capital gains tax being triggered. The exchange of units and shares between entities is a regular occurrence when a business is...

An entity is a small business entity if it: carries on a business, and satisfies the $10 million aggregated turnover test A CGT small business entity is an entity that is a small business entity that also satisfies an aggregated turnover test of $2 million TR 2019/1...

What is a share buyback? A share buyback involves a company purchasing its own shares from shareholders. The company is thereafter required to cancel those purchased shares. A share buyback is not the same as the redemption of shares whereby the company redeems shares...

What is an option?An option is a right to acquire an asset from the grantor (call option) or dispose of an asset to the grantor (put option) at a specified future time and at a specified price (the exercise price). The grantee pays an amount (the option premium) to...

It is common for a lessor (landlord) or lessee (tenant) to make special payments to the other in respect of lease arrangements. Examples of these types of payments include: Lease surrender payments Lease incentive payments Lease variation payments Lease premium...

It is very common for a small business to restructure to facilitate growth or adapt to commercial needs. By ‘restructure’ we refer to the process of changing the legal structure used to operate a business. Legal structures include the following: Sole Trader...