Introduction to capital gains tax

Rollovers

When some CGT events happen to an asset you are allowed to roll over (defer or disregard) any capital gain that results until another CGT event happens to the asset. Rollover is possible in the case of assets involved in the following events:

Note that the small business concessions also include a rollover.

Marriage or relationship breakdown

In some cases where an asset or a share of an asset is transferred from one spouse to another after their marriage or relationship breaks down, any CGT is automatically deferred until another CGT event happens (for example, until you sell the asset to someone else).

For more information, refer to Marriage or relationship breakdown and transferring of assets.

Loss, destruction or compulsory acquisition

In some situations where your CGT asset has been lost or destroyed or compulsorily acquired you may defer a capital gain.

For more information, refer to Involuntary disposal of a CGT asset.

Mining lease

If you dispose of your land (and any asset affixed to it) to an entity who holds a compulsory mining lease over it that would significantly affect your use of the land, you can defer a capital gain. (This also applies if the entity could have held a compulsory mining lease over your land.)

For more information, refer to Involuntary disposal of a CGT asset.

Scrip for scrip

You may be able to defer a capital gain if you dispose of your shares in a company or interest in a trust as a result of a takeover.

For more information, refer to Takeovers and mergers, scrip-for-scrip rollover.

Demergers

You may be able to defer a capital gain or capital loss if a CGT event happens to your shares in a company or interest in a trust as a result of a demerger.

For more information, refer to Demergers.

Other replacement-asset rollovers

You may be able to defer a capital gain or capital loss when you replace an asset in the following circumstances:

you, as a individual (sole trader), trustee, or the partners in a partnership, disposed of assets to a wholly owned company and assumed assets in the company, for example, shares (that is, you changed your business status by becoming a company)
you acquired replacement assets as a result of a CGT event happening to your small business assets
your statutory licence was renewed, extended or replaced
you are a financial service provider and you had assets - for example licences - replaced on transition to the financial services reform (FSR) regime
your strata title was converted
your shares or units were exchanged for shares or units in the same company or unit trust
your rights or options to acquire shares or units in a company or unit trust were exchanged for shares or units in the company or trust
your shares in one company were exchanged for shares in an interposed company
your units in a unit trust were exchanged for shares in a company
your unincorporated body (such as a club or association) was converted to an incorporated company
you disposed of an existing crown lease and replaced it with another
you disposed of depreciating assets and replaced them
you disposed of prospecting and mining entitlements and replaced them
you disposed of a security under a securities lending arrangement
your ownership of units or interests was ended under a trust restructure
a membership interest in a medical defence organisation (MDO) is replaced with a similar membership interest in another MDO and both MDOs are companies limited by guarantee
you replace an entitlement to water with one or more different water entitlements.

Other same-asset rollovers

You may be able to defer a capital gain or capital loss when assets are transferred or disposed of in the following circumstances:

an individual or trustee transfers a CGT asset to a wholly owned company
partners transfer their interest in a CGT asset to a wholly owned company
related companies transfer a CGT asset between them
a trust disposes of a CGT asset to a company under a trust restructure
a change to the trust deed of a complying approved deposit fund, a complying super fund or a fund that accepts worker entitlement contributions triggers a CGT event for the fund
a CGT asset is transferred from one small super fund to another because of a breakdown of the relationship between spouses or former spouses
a trustee of a trust creates a trust over a CGT asset or transfers a CGT asset to another trust where both the transferring and receiving trusts meet certain requirements.

Capital gains tax - home

Sections within CGT exemptions, rollovers and concessions

Last Modified: Wednesday, 30 January 2013