CGT Articles

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...

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...

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...

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...

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.

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...

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...

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...

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...