• Time of the CGT event

    Attention

    Warning:

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

    End of attention

    The timing of a CGT event is important because it tells you whether a capital gain or loss from the event affects your income tax liability for the current income year or another year.

    If you dispose of a CGT asset to someone else, the CGT event happens when the disposal contract is entered into or, if there is no contract, when you stop being the asset's owner.

    Example

    In June 2000 Sue enters into a contract to sell land. The contract is settled in October 2000.

    Sue makes the gain in the 1999-2000 year when she enters into the contract and not the 2000-01 income year when settlement takes place.

    If a CGT asset you own is lost or destroyed, the CGT event happens when you first receive compensation for the loss or destruction or, if you do not receive any compensation, when the loss is discovered or the destruction occurred.

    Example

    Rob owned a rental property which was destroyed by fire in June 1999. He received a payment under an insurance policy in October 1999. The CGT event occurred in October 1999.

    The CGT events specifically relevant to shares and unit trusts and the times of the events are dealt with in chapter 6.

    Last modified: 18 Sep 2009QC 18323