Types of CGT events
You need to know what type of CGT event you’re dealing with, because it affects how you work out your capital gain or capital loss and may determine its timing. If more than one CGT event happens, you apply the rules for the one most specific to your situation.
While the most common CGT event is the disposal of an asset – selling it or giving it away – there are many others, such as:
- the loss or destruction (voluntary or involuntary) of a CGT asset
- receiving compensation for the loss, destruction or compulsory acquisition of a CGT asset
- the disposal of a depreciating asset used partly or fully for non-taxable (private) purposes
- capital distributions to company shareholders or unit holders in a unit trust or managed fund
- shares or units being cancelled, surrendered, redeemed or declared worthless
- when you stop being an Australian tax resident, in which case you're taken to have disposed of any of your assets that are not taxable Australian property for their market value at that time.
You need to know what type of CGT event you’re dealing with, because it affects how you work out your capital gain or capital loss.