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CGT Articles

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 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...

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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...

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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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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 and shares between entities is a regular occurrence when a business is...

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 that also satisfies an aggregated turnover test of $2 million TR 2019/1...

Share Buyback Tax

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...

Tax on Options

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...

Taxation of Special Lease Payments

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...

Small Business Restructure Rollover

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...

Buy Sell Agreement – CGT Implications

Owners of a business (including family businesses) can plan for the proper succession of their business on the death or disablement of an owner or controller by entering into “buy/sell” agreements. This typically involves granting call and put options to each other...

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...