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 in which income year a capital gain or capital loss from the event affects your income tax.
If you dispose of a CGT asset to someone else, the CGT event happens when you enter into the contract for disposal. If there is no contract, the CGT event generally happens when you stop being the asset's owner.
In June 2002, Sue enters into a contract to sell land. The contract is settled in October 2002.
Sue makes the capital gain in the 2001-02 income year when she enters into the contract and not the 2002-03 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. If you do not receive any compensation, the CGT event happens when the loss is discovered or the destruction occurred.
Insurance policy Laurie owned a rental property that was destroyed by fire in June 2001. He received a payment under an insurance policy in October 2001. The CGT event happened in October 2001.
The CGT events relating to shares and units, and the times of the events, are dealt with in chapter 5.
Last modified: 06 Oct 2009QC 27417