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  • Advice under development – capital gains tax issues

    We are developing advice and guidance on the following capital gains tax issues.

    See also:

    [3802] Trust capital gains

    Title
    Draft Taxation Determination
    Income tax: is the source concept in Division 6 of Part III of the Income Tax Assessment Act 1936 (Division 6) relevant in determining whether a non-resident beneficiary of a resident trust (or trustee for them) is assessed on an amount of trust capital gain arising under Subdivision 115–C of the Income Tax Assessment Act 1997?

    Registered
    6 September 2016

    Purpose
    The draft Determination will set out proposed clarification on the taxation treatment of capital gains for a non-resident beneficiary or trustee of a resident trust.

    Expected completion
    To be advised

    Comments
    Targeted consultation has now ended. We are considering comments and issues raised which will be taken into account in developing the draft Determination.

    See also:

    [3803] Capital gain from a non-resident beneficiary of a non-fixed trust

    Title
    Draft Taxation Determination
    Income tax: does Subdivision 855–A (or subsection 768–915(1)) of the Income Tax Assessment Act 1997 (ITAA 1997) disregard a capital gain that a foreign-resident (or temporary resident) beneficiary of a resident non-fixed trust makes because of the operation of subsection 115–215(3)?

    Registered
    6 September 2016

    Purpose
    The draft Determination will set out proposed clarification on the taxation treatment of capital gains from non-taxable Australian property assets of a non-fixed trust.

    Expected completion
    To be advised

    Comments
    Targeted consultation has now ended. We are considering comments and issues raised which will be taken into account in developing the draft Determination.

    See also:

    [3918] Retirement villages – CGT event L5

    Title
    Draft Practical Compliance Guideline
    Retirement villages: ATO compliance approach to a capital gain made from CGT event L5 happening where TR 94/24 continues to apply to loan/lease occupancy agreements

    Registered
    May 2018

    Purpose
    The draft Guideline will provide proposed practical guidance when CGT event L5 in section 104-520 of the Income Tax Assessment Act 1997 happens for taxpayers continuing to rely on TR 94/24 Income tax: taxation amounts received by retirement village owners from incoming residents (withdrawn in April 2000) when a subsidiary that owns or develops a retirement village exits the group.

    Expected completion
    Under review – to be advised

    [3936] Disposal of dwellings acquired from a deceased estate

    Title
    Final Practical Compliance Guideline
    The Commissioner's discretion to extend the two year period to dispose of dwellings acquired from a deceased estate

    Registered
    August 2018

    Purpose
    The final Guideline will outline the factors we will consider when deciding whether to allow a longer period for trustees or beneficiaries of deceased estates to sell a dwelling acquired from the estate. The Guideline will also set out a ‘safe harbour’ compliance approach.

    Expected completion
    April 2019

    Comments
    Draft PCG 2018/D6 published on 22 August 2018.

    [3953] Back-to-back CGT roll-overs

    Title
    Draft Taxation Determination
    Capital gains tax: if a CGT roll-over contains a condition that entities who own interests can acquire or receive 'nothing else', can the condition be satisfied if, after the transaction for which that CGT roll-over is sought, another transaction is planned to happen under which the same entities will acquire or receive something?

    Registered
    November 2018

    Purpose
    The draft Determination will set out proposed guidance on sequential planned transactions where a CGT roll-over is claimed for each transaction and the first roll-over contains a 'nothing else' condition.

    Expected completion
    May 2019

    [3959] CGT cost base – rental property

    Title
    Draft Practical Compliance Guideline
    Calculation of CGT cost base for a rental property and balancing adjustment amounts for depreciating assets in the rental property where depreciation has either been claimed or disallowed

    Registered
    November 2018

    Purpose
    The draft Guideline will provide proposed practical guidance in the situation where a rental property is sold and depreciation has been claimed.

    Expected completion
    February 2019

    [3964] Appointment of capital – CGT events E5 or E7

    Title
    Draft Taxation Determination
    Does CGT event E5 or E7 happen if the trustee of a discretionary trust appoints an amount of capital to a beneficiary (eg by special resolution) and later makes a capital distribution in Australian currency in satisfaction of the appointed interest?

    Registered
    February 2019

    Purpose
    The guidance will set out the Commissioner’s proposed view on the CGT consequences of:

    • appointing an amount of capital to a beneficiary
    • the subsequent distribution of Australian currency to the beneficiary in satisfaction of the capital interest.

    Expected completion
    To be advised

    [3965] Australian currency denominated asset – CGT events E5 to E7

    Title
    Draft Taxation Determination
    Can an asset with a face value in Australian currency (including an Australian currency banknote or coin) be a CGT asset for CGT events E5 to E7?

    Registered
    February 2019

    Purpose
    The guidance will provide proposed clarification of whether assets with a face value in Australian currency (including Australian currency itself) can be CGT assets for CGT events E5 to E7.

    Expected completion
    To be advised

    [3966] Unit trust – CGT events E5 to E8

    Title
    Draft Taxation Determination
    What is the meaning of the term ‘unit trust’ in CGT events E5 to E8, and what are the interaction implications for other CGT events, in particular CGT events E4 and C2?

    Registered
    February 2019

    Purpose
    The guidance will set out the Commissioner’s proposed view on:

    • what is a ‘unit trust’ for CGT events E5 to E8
    • its implications for other CGT events.

    Expected completion
    To be advised

    Last modified: 11 Feb 2019QC 50316