[3953] Back-to-back CGT rollovers [updated]
Title
Draft Practical Compliance Guideline
Back-to-back CGT roll-overs and Part IVA of the Income Tax Assessment Act 1936
Purpose
This draft Guideline will explain when we are more likely to apply compliance resources to consider the application of Part IVA of the Income Tax Assessment Act 1936 (the general anti-avoidance provisions of the income tax law) to an arrangement that comprises multiple CGT rollovers.
Expected completion
May or June 2026
Comments
The development of the proposed draft Taxation Determination intended to accompany this draft Guideline is on hold (see [4259] Satisfying the conditions in Subdivision 122-A when part of a back-to-back rollover).
Contact
Tara McLachlan, Private Wealth
Phone: 07 3149 5339
[4178] Cryptocurrency [new]
Title
Draft Taxation Determination
Income tax: CGT consequences of using a smart contract to wrap and unwrap crypto assets
Purpose
This draft Determination will consider how the CGT provisions apply when a crypto asset is sent to a wrapping contract to be wrapped or unwrapped. Wrapping contracts are a type of smart contract used to exchange one crypto asset for its wrapped equivalent, which is often done to enable compatibility with certain protocols or platforms.
This draft Determination does not apply to all forms of wrapping facilitated by smart contracts. It only applies to the specific wrapping arrangement set out in this draft Determination.
Expected completion
August 2026
Contact
Dexter Marcenko, Tax Counsel Network
Phone: 03 6221 0000
Title
Draft Taxation Determination
Income tax: issue, receipt or disposal of a crypto asset by an airdrop
Purpose
This draft Determination will consider how the income tax and CGT provisions apply when a crypto asset is issued, received or disposed of via an airdrop. Airdrops are a process whereby an issuer will distribute existing or newly created crypto assets to a recipient either in return for the recipient’s provision of goods or services or as a reward for holding crypto assets or undertaking activities. Airdrops may be unsolicited by the recipient.
This draft Determination does not apply where the recipient receives the airdropped crypto assets in return for providing consideration in the form of currency or other crypto assets or where the airdrop is received as a reward for providing liquidity to a decentralised exchange.
Expected completion
August 2026
Contact
Shelley McCann, Tax Counsel Network
Phone: 07 3213 5634
[4188] Deceased estates: 'double death' [updated]
Title
Draft Taxation Determination
CGT consequences under Division 128 of the Income Tax Assessment Act 1997 when a beneficiary of a deceased estate dies before a CGT asset of the deceased estate passes to them.
Purpose
This draft Determination will clarify the Commissioner’s view on the application of the CGT rollover concession in Division 128 of the Income Tax Assessment Act 1997 when a beneficiary of a deceased estate dies before a CGT asset of the deceased estate passes to them.
Expected completion
Mid 2026
Comments
Targeted consultation was expected to be completed in April 2026.
Contact
Danijela Jablanovic, Individuals and Intermediaries
Phone: 07 3213 5864
Danijela.Jablanovic@ato.gov.au
[4189] Deceased estates: right to occupy
Title
Final Taxation Determination
Income tax: deceased estates – meaning of ‘right to occupy the dwelling under the deceased’s will’ in item 2(b) of column 3 of the table in subsection 118-195(1) of the Income Tax Assessment Act 1997
Purpose
This final Determination will provide the Commissioner’s view on when an individual has a right to occupy a dwelling under a deceased’s will for the purposes of subsection 118-195(1) of the Income Tax Assessment Act 1997 to obtain a CGT main residence exemption.
Expected completion
To be advised
Comments
Draft Taxation Determination TD 2026/D1 Income tax: deceased estates – meaning of ‘right to occupy the dwelling under the deceased’s will’ in item 2(b) of column 3 of the table in subsection 118-195(1) of the Income Tax Assessment Act 1997 published on 28 January 2026. Comments period closed on 27 February 2026.
Contact
Penny Hextall, Individuals and Intermediaries
Phone: 03 6221 0624
[4259] Satisfying the conditions in Subdivision 122-A when part of a back-to-back rollover [updated]
Title
Draft Taxation Determination
Income tax: application of CGT rollover qualifying conditions when a rollover is part of a single arrangement that includes more than one CGT rollover
Purpose
This draft Determination will consider how the CGT provisions apply in circumstances where there are back-to-back CGT rollovers claimed under both Subdivisions 122-A and 124-M of the Income Tax Assessment Act 1997.
Expected completion
To be advised
Comments
The development of the draft Determination is currently on hold.
Contact
Tara McLachlan, Private Wealth
Phone: 07 3149 5339