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  • When CGT applies to shares and units

    As an investor, capital gains tax (CGT) applies to your shares and units when:

    • you sell them
    • another CGT event happens to them.

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    When CGT applies

    Selling your shares or units is the most common CGT event, but there are others.

    A CGT event may occur if you:

    If you sell shares or have another CGT event, you need to calculate your CGT and report it in your income tax return.

    When a corporate group restructures, we often publish a class ruling or fact sheet setting out the tax consequences for shareholders.

    When CGT does not apply

    CGT does not apply to:

    • dividends you receive from your investments – these are taxed as ordinary income
    • profits on the sale of shares if you are carrying on a business of share trading – these are taxed as ordinary business income rather than capital gains.
    Last modified: 04 Aug 2021QC 66045