Introduction to capital gains tax

CGT exemptions, rollovers and concessions

A number of assets are exempt from CGT, including your home, car, some collectables and personal use assets, and depreciating assets used solely for taxable purposes.

Rollovers

In certain circumstances you can defer or disregard a capital gain on a CGT event until another CGT event happens. This is called a 'rollover'. For example, if an asset is transferred from one spouse to another following a marriage or relationship breakdown, any tax payable is automatically deferred until another CGT event happens, such as selling the asset to someone else.

There is generally no rollover or exemption for a capital gain when you sell an asset and put the proceeds into a super fund or use them to purchase an identical or similar asset, or when you transfer an asset into a super fund. For example, if you sell a rental property and put the proceeds into a super fund or use the proceeds to purchase another rental property, rollover is not available.

However, you may transfer an asset or the capital proceeds from the sale of an asset into a super fund to satisfy certain conditions under the small business retirement exemption.

Small business CGT concessions

In addition to the exemptions and rollovers available more widely, there are concessions that may allow you to disregard or defer some or all of a capital gain from an active asset that you use in your small business.

You may also be eligible for the 50% CGT discount, which discounts or reduces your capital gain if you owned the asset for at least 12 months before disposing of it.

Capital gains tax - home

Sections within CGT exemptions, rollovers and concessions

Last Modified: Wednesday, 30 January 2013