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CGT Articles

CGT Event B1

CGT event B1 What is CGT event B1? CGT event B1 involves a situation where a taxpayer enters into an agreement with another entity under which: the right to use and enjoyment of a CGT asset the...

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CGT Event H2

CGT Event H2 What is CGT Event H2? CGT Event H2 involves a situation where an act, transaction or event occurs in relation to a CGT asset owned by a taxpayer and that act, transaction or event does...

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CGT Event E1

CGT Event E1  What is CGT Event E1? CGT Event E1 deals with a situation where a taxpayer creates a trust over a CGT asset by way of declaration or settlement. The rules dealing with CGT Event E1 are...

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CGT Event K7

CGT event K7 What is CGT event K7? CGT event K7 broadly involves a situation where a balancing adjustment event occurs for a depreciating asset held by a taxpayer that was at some time used (or...

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Goodwill (CGT)

Goodwill (CGT)

Goodwill is commonly known as the attractive force of a business that brings in its customers. The exact definition of goodwill is different under accounting principles compared with general law...

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CGT Event J2-J5-J6

CGT Event J2 - J5 - J6      CGT events J2, J5 and J6 are invoked in situations where a taxpayer utilises the small business CGT roll-over concession and a certain specific...

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CGT Event G3

CGT Event G3 What is CGT Event G3? CGT event G3 is relevant where an appointed liquidator or administrator makes a declaration that the shareholders of a company, or shareholders of a relevant class...

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CGT event K4

CGT event K4

CGT event K4  CGT event K4 addresses a situation where a taxpayer that holds a CGT asset on capital account starts to instead hold that asset as trading stock. This is most common in a property...

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CGT Rollover Relief – Relationship Breakdown

A taxpayer is subject to capital gains tax where a CGT event happens to a CGT asset they own.   When it comes to relationship breakdowns, one would expect a number of potential taxing point under the CGT regime as the assets held by the persons in the relationship...

CGT event K4

CGT event K4  CGT event K4 addresses a situation where a taxpayer that holds a CGT asset on capital account starts to instead hold that asset as trading stock. This is most common in a property development context where a taxpayer that owns property for another...

CGT Event I1

CGT event I1 What is CGT event I1?     CGT event I1 addresses a situation where an individual or company owns CGT assets and ceases being an Australian resident for taxation purposes.   The rules addressing the operation of CGT event I1 are contained in section...

CGT Event G1

CGT Event G1   What is CGT Event G1?   CGT event G1 addresses a situation where a company makes certain payments to a shareholder.   Specifically, the requirements are that:   The company makes a payment to a shareholder in respect of share owned; and   The payment is...

CGT Event K3

What is CGT event K3?   CGT event K3 addresses a situation where a taxpayer becomes deceased and a CGT asset that taxpayer owned passes to a beneficiary of the deceased estate, whereby the beneficiary is either:   An exempt entity, or   The trustee of a complying...

CGT Event A1

What is CGT Event A1?  CGT event A1 addresses a situation where a taxpayer disposes of a CGT asset.   A taxpayer disposes of a CGT asset where there is a change of ownership over the CGT asset.    There will generally not be a disposal where the taxpayer ceases to be...

CGT Event D1

CGT Event D1    What is CGT Event D1? CGT event D1 happens 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...

Forex Tax

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...

CGT Event E4

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...

Life interest – Right to reside

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...