• 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 you may own 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 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 have owned 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 have owned 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 any of the preceding CGT assets.

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

    Last modified: 04 Mar 2016QC 27527