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  • Exemptions


    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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    The exemptions listed below allow you to reduce or disregard a capital gain or capital loss you make from certain CGT events.

    General exemptions

    A capital gain or capital loss you make from any of the following is disregarded:

    • a car (that is, a motor vehicle designed to carry a load of less than one tonne and fewer than 9 passengers) or motor cycle or similar vehicle
    • a decoration awarded for valour or brave conduct unless you paid money or gave any other property for it
    • collectables acquired for $500 or less
    • a capital gain froma personal use asset acquired for $10,000 or less
    • a capital loss from a personal use asset
    • CGT assets used solely to produce exempt income
    • shares in a pooled development fund
    • use of a GST direct assistance certificate of up to $200 value
    • compensation or damages you receive for any wrong or injury you suffer in your occupation
    • compensation or damages you receive for any wrong, injury or illness you or your relatives suffer
    • compensation you receive under the firearms surrender arrangements
    • winnings or losses from gambling, a game or a competition with prizes
    • an amount you receive as reimbursement or payment of your expenses under the General Practice Rural Incentives Program or the Sydney Aircraft Noise Insulation Project
    • a CGT asset that is your trading stock at the time of a CGT event
    • a re-establishment grant made under section 52A of the Farm Household Support Act 1992
    • a dairy exit payment under the Farm Household Support Act 1992
    • a reimbursement or payment made under the M4/M5 Cashback Scheme
    • some types of testamentary gifts or
    • in certain circumstances, a general insurance policy, a life insurance policy or an annuity instrument.
    Other exemptions

    Any capital gain you make may be reduced if, because of a CGT event, an amount has been included in your assessable income other than as a capital gain. Any capital loss you make from the following is disregarded:

    • the expiry, forfeiture, surrender or assignment of a lease if the lease is not used solely or mainly for the purpose of producing assessable income
    • a payment to an entity of alienated personal services income that is included in an individual's assessable income (or any other amount attributable to that income).

    A capital loss made by an exempt entity is also disregarded.

    Specific exemption-main residence

    You can ignore a capital gain or capital loss you make from a CGT event relating to a dwelling that was your main residence. This can change, however, depending on how you came to own the dwelling and what you have done with it-for example, if you rented it out (see chapter 6 for more information).

    Last modified: 06 Oct 2009QC 27417