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CGT Articles

CGT Event C2

CGT event C2 What is CGT event C2? CGT Event C2 is where a taxpayer’s ownership of an intangible CGT asset ends because the asset: Is redeemed or cancelled; Is released, discharged or satisfied;...

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CGT Event C1

CGT event C1   What is CGT Event C1? CGT Event C1 is where a taxpayer owns a CGT asset which becomes lost or destroyed. The rules governing CGT Event C1 are contained in section 104-20 of the...

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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   CGT Event H2 is where an act, transaction or event occurs in relation to a CGT asset owned by a taxpayer and that act, transaction or event does not result in an adjustment being...

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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 is where a balancing adjustment event occurs for a depreciating asset held by a taxpayer that was at some time used (or installed ready for...

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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...

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Share Buyback Tax

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...

Tax on Options

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...

Taxation of Special Lease Payments

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...

Small Business Restructure Rollover

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...

Buy Sell Agreement – CGT Implications

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...

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

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...

Sale of Business Assets (Tax)

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

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...