Time of the CGT event



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

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You need to know the time of a CGT event to determine in which income year a capital gain or loss affects your income tax.

If an asset is lost or destroyed and you receive compensation, the time of the CGT event is when you first receive the compensation.

If you do not receive any compensation, the time of the CGT event is when the loss is discovered or the destruction occurred.

If an asset for which there is roll-over is compulsorily acquired from you by an Australian government agency, the time of the CGT event is when:

  • you first received compensation from the agency
  • the agency becomes its owner
  • the agency, under its power of compulsory acquisition:
    • enters the asset or
    • takes possession of the asset.

If an asset is disposed of to an Australian government agency following negotiation, rather than under their power to compulsorily acquire it, the time of the CGT event is:

  • the date the contract to acquire it is made or
  • the date of the change of ownership if there is no contract.

If a lease granted by an Australian government agency expires and is not renewed, the time of the CGT event is when the lease expires.

Last modified: 18 Sep 2009QC 18323