• Time of the CGT event

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    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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    You need to know the time of a CGT event to work out in which income year a capital gain or capital loss affects your income tax.

    If an asset is lost or destroyed and you receive compensation, the time of the CGT event is when you first receive the compensation.

    If you do not receive any compensation, the time of the CGT event is when the loss is discovered or the destruction occurred.

    If an Australian government agency compulsorily acquires your asset, the time of the CGT event is when:

    • you first received compensation from the agency, or
    • the agency enters the asset (for example, land) or takes possession of it.

    If an Australian government agency acquires your asset following negotiation (rather than compulsorily acquiring it), the time of the CGT event is:

    • the date the contract to acquire it is made, or
    • the date of the change of ownership if there is no contract.

    If a lease that had been granted to you by an Australian government agency expires and is not renewed, the time of the CGT event is when the lease expires.

    Last modified: 04 Mar 2016QC 27527