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  • Rollovers

    You may be allowed to roll over (defer or disregard) a capital gain or loss from a capital gains tax (CGT) event until another CGT event happens in the case of assets involved in the following events:

    Scrip for scrip

    You may be able to defer a capital gain if you dispose of your shares in a company or interest in a trust as a result of a takeover.

    See also:

    Demergers

    You may be able to defer a capital gain or loss if a CGT event happens to your shares in a company or your interest in a trust as a result of a demerger.

    See also:

    Other replacement-asset rollovers

    You may be able to defer a capital gain or loss when you replace an asset in the following circumstances

    • you, as an individual (sole trader), trustee, or a partner in a partnership, dispose of assets to a wholly owned company and assume assets in the company such as shares (that is, you change your business status by becoming a company)
    • you acquire replacement assets as a result of a CGT event happening to your small business assets
    • your statutory licence is renewed, extended or replaced
    • you're a financial service provider and you have assets such as licences replaced on transition to the financial services reform regime
    • your strata title is converted
    • your shares or units are exchanged for shares or units in the same company or unit trust
    • your rights or options to acquire shares or units in a company or unit trust are exchanged for shares or units in the company or trust
    • your shares in one company are exchanged for shares in an interposed company
    • your units in a unit trust are exchanged for shares in a company
    • your unincorporated body (such as a club or association) is converted to an incorporated company
    • you dispose of an existing crown lease and replace it with another
    • you dispose of depreciating assets and replace them
    • you dispose of prospecting and mining entitlements and replace them
    • you dispose of a security under a securities lending arrangement
    • your ownership of units or interests ends under a trust restructure
    • a membership interest in a medical defence organisation is replaced with a similar membership interest in another medical defence organisation and both organisations are companies limited by guarantee
    • you replace an entitlement to water with one or more different water entitlements.

    Other same-asset rollovers

    You may be able to defer a capital gain or loss when assets are transferred or disposed of in the following circumstances:

    • an individual or trustee transfers a CGT asset to a wholly owned company
    • partners transfer their interest in a CGT asset to a wholly owned company
    • related companies transfer a CGT asset between them
    • a trust disposes of a CGT asset to a company under a trust restructure
    • a change to the trust deed of a complying approved deposit fund, a complying super fund or a fund that accepts worker entitlement contributions triggers a CGT event for the fund
    • a CGT asset is transferred from one small super fund to another because of a breakdown of the relationship between spouses or former spouses
    • a trustee of a trust creates a trust over a CGT asset or transfers a CGT asset to another trust where both the transferring and receiving trusts meet certain requirements.

    See also:

    Last modified: 17 Jul 2017QC 22164