Appendix 1 - Summary of CGT events
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
A1 Disposal of a CGT asset |
when the disposal contract is entered into or, if none, when the entity stops being the asset's owner |
capital proceeds from disposal less asset's cost base |
asset's reduced cost base less capital proceeds |
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
B1 Use and enjoyment before title passes |
when use of the CGT asset passes |
capital proceeds less the asset's cost base |
asset's reduced cost base less capital proceeds |
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
C1 Loss or destruction of a CGT asset |
when compensation is first received or, if none, when the loss is discovered or destruction occurred |
capital proceeds less the asset's cost base |
asset's reduced cost base less capital proceeds |
C2 Cancellation, surrender and similar endings |
when the contract ending an asset is entered into or, if none, when an asset ends |
capital proceeds from the ending less asset's cost base |
asset's reduced cost base less capital proceeds |
C3 End of an option to acquire shares and so on |
when the option ends |
capital proceeds from granting the option less expenditure in granting it |
expenditure in granting the option less capital proceeds |
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
D1 Creating contractual or other rights |
when the contract is entered into or the right is created |
capital proceeds from creating the right less incidental costs of creating the right |
incidental costs of creating the right less capital proceeds |
D2 Granting an option |
when the option is granted |
capital proceeds from the grant less expenditure to grant it |
expenditure to grant the option less capital proceeds |
D3 Granting a right to income from mining |
when the contract is entered into or, if none, when the right is granted |
capital proceeds from the grant of right less the expenditure to grant it |
expenditure to grant the right less capital proceeds |
D4 Entering into a conservation covenant |
when covenant is entered into |
capital proceeds from covenant less cost base apportioned to the covenant |
reduce cost base apportioned to the covenant less capital proceeds from covenant |
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
E1 Creating a trust over a CGT asset |
when the trust is created |
capital proceeds from creating the trust less the asset's cost base |
asset's reduced cost base less capital proceeds |
E2 Transferring a CGT asset to a trust |
when the asset is transferred |
capital proceeds from the transfer less the asset's cost base |
asset's reduced cost base less capital proceeds |
E3 Converting a trust to a unit trust |
when the trust is converted |
market value of the asset at that time less its cost base |
asset's reduced cost base less that market value |
E4 Capital payment for trust interest |
when the trustee makes the payment |
non-assessable part of the payment less the cost base of the trust interest |
no capital loss |
E5 Beneficiary becoming entitled to a trust asset |
when the beneficiary becomes absolutely entitled |
for a trustee-market value of the CGT asset at that time less its cost base; for a beneficiary-that market value less the cost base of the beneficiary's capital interest |
for a trustee-reduced cost base of the CGT asset at that time less that market value; for a beneficiary-reduced cost base of the beneficiary's capital interest less that market value |
E6 Disposal to a beneficiary to end an income right |
the time of the disposal |
for a trustee-market value of the CGT asset at that time less its cost base; for a beneficiary-that market value less the cost base of the beneficiary's right to income |
for a trustee-reduced cost base of the CGT asset at that time less that market value; for a beneficiary-reduced cost base of the beneficiary's right to income less that market value |
E7 Disposal to a beneficiary to end capital interest |
the time of the disposal |
for a trustee-market value of the CGT asset at that time less its cost base; for a beneficiary-that market value less the cost base of the beneficiary's capital interest |
for a trustee-reduced cost base of the CGT asset at that time less that market value; for a beneficiary-reduced cost base of the beneficiary's capital interest less that market value |
E8 Disposal by a beneficiary of capital interest |
when the disposal contract is entered into or, if none, when the beneficiary ceases to own the CGT asset |
capital proceeds less the appropriate proportion of the trust's net assets |
appropriate proportion of the trust's net assets less the capital proceeds |
E9 Creating a trust over future property |
when the entity makes an agreement |
market value of the property (as if it existed when the agreement was made) less incidental costs in making the agreement |
incidental costs in making the agreement less the market value of the property (as if it existed when the agreement was made) |
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
F1 Granting a lease |
for granting a lease-when the entity enters into the lease contract or, if none, at the start of the lease; for a lease renewal or extension-at the start of the renewal or extension |
capital proceeds less the expenditure on grant, renewal or extension |
expenditure on grant, renewal or extension less capital proceeds |
F2 Granting a long term lease |
for granting a lease-when the lessor grants the lease; for a lease renewal or extension-at the start of the renewal or extension |
capital proceeds from the grant, renewal or extension less the cost base of the leased property |
reduced cost base of the leased property less the capital proceeds from the grant, renewal or extension |
F3 Lessor pays lessee to get lease changed |
when the lease term is varied or waived |
no capital gain |
amount of expenditure to get lessee's agreement |
F4 Lessee receives payment for changing a lease |
when the lease term is varied or waived |
capital proceeds less the cost base of lease |
no capital loss |
F5 Lessor receives payment for changing a lease |
when the lease term is varied or waived |
capital proceeds less expenditure in relation to variation or waiver |
expenditure in relation to variation or waiver less capital proceeds |
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
G1 Capital payment for shares |
when the company pays a non-assessable amount |
payment less cost base of shares |
no capital loss |
G3 Liquidator declares shares worthless |
when the liquidator makes the declaration |
no capital gain |
shares' reduced cost base |
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
H1 Forfeiture of a deposit |
when the deposit is forfeited |
deposit less expenditure in connection with the prospective sale |
expenditure in connection with the prospective sale less deposit |
H2 Receipt for an event relating to a CGT asset |
when the act, transaction or event occurred |
capital proceeds less the incidental costs |
incidental costs less capital proceeds |
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
I1 Individual or company stops being an Australian resident |
when the individual or company stops being an Australian resident |
for each CGT asset the person owns, its market value less its cost base |
for each CGT asset the person owns, its reduced cost base less its market value |
I2 Trust stops being a resident trust |
when the trust ceases to be a resident trust for CGT purposes |
for each CGT asset the trustee owns, its market value less its cost base |
for each CGT asset the trustee owns, its reduced cost base less its market value |
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
J1 Company stops being a member of a wholly owned group after a roll-over |
when the company stops being a member of a wholly owned group after a roll-over |
market value of the asset at the time of the event less its cost base |
reduced cost base of the asset less that market value |
J2 Change in status of a CGT asset that was a replacement asset in a roll-over under Subdivision 152-E |
when the change in status happens |
the amount of the capital gain that you disregarded under Subdivision 152-E |
no capital loss |
J3 A change happens in circumstances where a share in a company or an interest in a trust was a replacement asset in a roll-over under Subdivision 152-E |
when the change in circumstances happens |
the amount of the capital gain that you disregarded under Subdivision 152-E |
no capital loss |
J4 Trust failing to cease to exist after roll-over under Subdivision 124-N |
when the failure to cease to exist happens |
for the company - market value of the asset at the time the company acquired less its cost base at that time for shareholder - market value of the share at the time of the shareholder acquired it less its cost base at that time |
for the company - reduced cost base of the asset at the time the company acquired the it less its market value at that time for shareholder - reduced cost base of the share at the time the shareholder acquired it less its market value at that time |
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
K1 Partial realisation of an intellectual property right |
when a contract is entered into or, if none, when partial realisation happens |
capital proceeds from partial realisation less the cost base of the item of intellectual property |
no capital loss |
K2 Bankrupt pays an amount in relation to debt |
when payment is made |
no capital gain |
that part of the payment that relates to the denied part of a net capital loss |
K3 Asset passing to a tax-advantaged entity |
when an individual dies |
market value of the asset at death less its cost base |
reduced cost base of the asset less that market value |
K4 CGT asset starts being trading stock |
when the asset starts being trading stock |
market value of asset less its cost base |
reduced cost base of asset less that market value |
K5 Special capital loss from a collectable that has fallen in market value |
when CGT event A1, C2 or E8 happens to shares in the company, or an interest in the trust, that owns the collectable |
no capital gain |
market value of the shares or interest (as if the collectable had not fallen in market value) less the capital proceeds from CGT event A1, C2 or E8 |
K6 Pre-CGT shares or trust interest |
when another CGT event involving the shares or interest happens |
capital proceeds from the shares or trust interest that are attributable to a post-CGT asset owned by the company or trust, less the assets' cost bases |
no capital loss |
K7 Balancing adjustment occurs for a depreciating asset that you used for purposes other than taxable purposes |
when the balancing adjustment event occurs |
termination value less cost times fraction |
cost less termination value times fraction |
K8 Direct value shifts affecting your equity or loan interests in a company or trust |
the decrease time for the interests |
the capital gain worked out under section 725-365 |
no capital loss |
K9 Entitlement to receive payment of a carried interest |
when you become entitled to receive the payment |
capital proceeds from the entitlement |
no capital loss |
CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
L1 Reduction under section 705-57 in tax cost setting amount of assets of entity becoming subsidiary member of consolidated group |
just after entity becomes subsidiary member |
no capital gain |
amount of reduction |
L2 Amount remaining after step 3A etc of joining allocable cost of amount is negative |
just after entity becomes subsidiary member |
amount remaining |
no capital loss |
L3 Tax cost setting amounts for retained cost base assets exceed joining allocable cost amount |
just after entity becomes subsidiary member |
amount of excess |
no capital loss |
L4 No reset cost base assets against which to apply excess of net allocable cost amount |
just after entity becomes subsidiary member |
no capital gain |
amount of excess |
L5 Amount remaining after step 4 of leaving allocable cost amount is negative |
when entity ceases to be subsidiary member |
amount remaining |
no capital loss |
L6 Error in calculation of tax cost setting amount for joining entity's assets |
start of the income year when the Commissioner becomes aware of the errors |
the net overstated amount resulting from the errors, or a portion of that amount |
the net understated amount resulting from the errors, or a portion of that amount |
L7 Discharged amount of liability differs from amount for allocable cost amount purposes |
start of the income year in which the liability is realised |
your allocable cost amount less what it would have been had you used the correct amount for liability |
What your allocable cost amount would have been had you used the correct amount for the liability less your allocable cost amount |