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CGT Articles

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...

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CGT Event K3

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...

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CGT Event A1

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.   ...

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CGT Event D1 and C2

CGT Event D1 and C2

CGT event D1 concerns the creation of contractual or other rights in another entity. Conversely, CGT event C2 concerns the cancellation, surrender or ending of a right. The somewhat connected nature...

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Forex Tax

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...

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CGT Event E4

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...

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Scrip for Scrip Rollover

Scrip for Scrip Rollover

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...

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Small Business Entity

Small Business Entity

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...

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Property Development – CGT or Income Tax?

It’s not uncommon for landowners of decent sized blocks to release their land’s potential by subdividing and selling the ‘back yard’ or completely redeveloping land they own. Upon sale, there are a number of factors that determine whether the proceeds are assessed as...

CGT Events

What is a CGT event?When you sell an asset that is subject to capital gains tax (CGT), it is called a CGT event. This is the point at which you make a capital gain or loss. There are other CGT events, such as the loss or destruction of an asset, or creating...

Sale of Business Assets – Tax Treatment

When selling/buying the assets of a business, for CGT and depreciation purposes it is necessary to allocate the consideration received/paid for each of the assets. Due to the differing taxation implications for both, the purchaser and vendor may have conflicting...

Capital Gains Tax

This article discusses capital gains tax in Australia, including the concept of CGT events and net capitals gains or losses, up to the applicable exemptions.

Small Business CGT Concessions

This article is an overview of the small business CGT concessions. The small business CGT concessions can significantly reduce and sometimes eliminate tax payable on the sale of a small business. The concessions are therefore extremely important when tax planning for...

CGT Main Residence Exemption

The capital gains tax (CGT) provisions in the Income Tax Assessment Act 1997 (ITAA 1997) do not apply to the disposal of the main residence where certain conditions are met. Generally, this means that where an individual sells the main residence, no CGT is payable...

Earnout Arrangement

What is an earnout arrangement? An earnout arrangement is where a business is sold for a set amount plus a percentage of profits in the future for a specified period.  The CGT rules provide that capital gains and losses arising in respect of look-through earnout...

CGT on Property Development

The revenue/capital distinction It is very important to determine whether a property is being sold on revenue or capital account as it determines whether: any gain is exempt because it is a disposal of a pre-CGT asset the 50% discount and the CGT small business...