Show download pdf controls
  • Special rule for capital gains tax purposes



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    As a general rule, a CGT event happens if an asset is transferred from one person to another. A person who makes a capital gain or loss from that CGT event must take it into account in determining their net capital gain or net capital loss for the income year. It is only if an asset is acquired before 20 September 1985 - a pre-CGT asset - that the capital gain or loss is disregarded.

    Under a special rule that applies on the occasion of your death, however, any capital gain or loss is disregarded if a post-CGT asset you own just before you die:

    • passes from you
      • to your legal personal representative or
      • to a beneficiary or
    • passes from the legal personal representative to a beneficiary.

    Additionally, if you make a testamentary gift of property - not land or a building - to a public library, museum or art gallery in Australia or to the Australiana Fund under the Cultural Bequests Program, any capital gain or loss is disregarded. Under this program, the Minister for Communications and the Arts must certify that the gift meets the specific requirements of the program.

    Last modified: 18 Sep 2009QC 18323