Appendixes | Australian Taxation Office

Appendixes

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Appendix 1 Summary of CGT events

Disposal
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	The capital proceeds from disposal less the asset’s cost base	The asset’s reduced cost base less capital proceeds

Hire purchase and similar agreements
CGT event	Time of event	Capital gain	Capital loss
B1 Use and enjoyment before title passes	When use of the CGT asset passes	The capital proceeds less the asset’s cost base	The asset’s reduced cost base less capital proceeds

End of a CGT asset
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	The capital proceeds less the asset’s cost base	The 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	The capital proceeds from the ending less the asset’s cost base	The asset’s reduced cost base less capital proceeds
C3 End of an option to acquire shares and so on	When the option ends	The capital proceeds from granting the option less expenditure in granting it	The expenditure in granting the option less capital proceeds

Bringing a CGT asset into existence
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	The capital proceeds from creating the right less incidental costs of creating the right	The incidental costs of creating the right less capital proceeds
D2 Granting an option	When the option is granted	The capital proceeds from the grant less expenditure to grant it	The 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	The capital proceeds from the grant of right less the expenditure to grant it	The expenditure to grant the right less capital proceeds
D4 Entering into a conservation covenant	When covenant is entered into	The capital proceeds from covenant less cost base apportioned to the covenant	The reduced cost base apportioned to the covenant less capital proceeds from covenant

Trusts
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	The 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	The 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	The 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, the reduced cost base of the CGT asset at that time less that market value For a beneficiary, the 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, the reduced cost base of the CGT asset at that time less that market value For a beneficiary, the 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, the reduced cost base of the CGT asset at that time less that market value For a beneficiary, the 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	The 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	The incidental costs in making the agreement less the market value of the property (as if it existed when the agreement was made)
E10 Annual cost base reduction exceeds cost base of interest in AMIT	When reduction happens	Excess of cost base reduction over cost base	No capital loss

Leases
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 for variation or waiver	Expenditure for variation or waiver less capital proceeds

Shares
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 or administrator declares shares or financial instruments worthless	When declaration is made	No capital gain	Reduced cost base of shares or financial instruments

Special capital receipts
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 incidental costs	Incidental costs less capital proceeds

Cessation of residency
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

Reversal of rollover
CGT event	Time of event	Capital gain	Capital loss
J1 Company stops being a member of a wholly owned group after a rollover	When the company stops being a member of a wholly owned group after a rollover	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 for replacement asset or improved asset after a rollover under Subdivision 152-E	when the change happens	The amount mentioned in subsection 104-185(5)	No capital loss
J4 Trust failing to cease to exist after rollover under Subdivision 124-N	when the failure to cease to exist happens	For a company, market value of the asset at the time the company acquired it less its cost base at that time For a shareholder, market value of the share at the time the shareholder acquired it less its cost base at that time	For a company, reduced cost base of the asset at the time the company acquired it less its market value at that time For a shareholder, reduced cost base of the share at the time the shareholder acquired it less its market value at that time
J5 Failure to acquire replacement asset and to incur fourth element expenditure after a rollover under Subdivision 152-E	At the end of the replacement asset period	The amount of the capital gain that you disregarded under Subdivision 152-E	No capital loss
J6 Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gain	At the end of the replacement asset period	The amount mentioned in subsection 104-198(3)	No capital loss

Other CGT events
CGT event	Time of event	Capital gain	Capital loss
K1 Incoming international transfer of emissions unit	when you start to hold the unit as a registered emissions unit	unit's market value is more than its cost base	unit's market value is less than its cost base
K2 Bankrupt pays an amount for 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 the 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 post-CGT assets 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	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
K10 You make a forex realisation gain as a result of forex realisation event 2 and item 1 of the table in subsection 775-70(1) applies	When the forex realisation event happens	Equal to the forex realisation gain	No capital loss
K11 You make a forex realisation loss as a result of forex realisation event 2, and item 1 of the table in subsection 775-75(1) applies	When the forex realisation event happens	No capital gain	Equal to the forex realisation loss
K12 Foreign hybrid loss exposure adjustment	Just before the end of the income year	No capital gain	The amount stated in subsection 104-270(3)

Consolidations
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 or MEC group	Just after entity becomes subsidiary member	No capital gain	Amount of reduction
L2 Amount remaining after step 3A etc of ‘joining allocable cost 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 on joining	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
L8 Reduction in tax cost setting amount for reset cost base assets on joining cannot be allocated	Just after entity becomes subsidiary member	No capital gain	Amount of reduction that cannot be allocated

Last modified: 20 Jul 2021QC 64895