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  • Necessary connection with Australia
    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

    Assets that have a necessary connection with Australia include:

    • land or a building in Australia (or an interest in land or a building)
    • a CGT asset that you have used in carrying on a business through a permanent establishment in Australia
    • a share in a private company that is an Australian resident company for the income year in which the CGT event happens
    • a share, or an interest in a share, in a public company that is an Australian resident company and in which you and your associates own at least
    • 10% of the value of the shares at any time during the five years before the CGT event happens
    • a unit in a unit trust that is a resident trust and in which you and your associates own at least 10% of the issued units at any time during the five years before the CGT event happens
    • a unit or other interest in a trust that is a resident trust for CGT purposes for the income year in which the CGT event happens, and
    • an option or right to acquire a CGT asset listed above.

    Assets that do not fall within one of these categories-for example, land or a building overseas or shares in a foreign company-do not have the necessary connection with Australia.

    Last modified: 25 Feb 2020QC 27448