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If you receive money

Last updated 5 October 2009

If you receive money because a CGT event happens, you can choose roll-over only if:

  • you incur expenditure in acquiring another CGT asset or
  • part of the original asset is lost or destroyed and you incur expenditure of a capital nature in repairing or restoring it.

You must incur at least some of the expenditure:

  • no earlier than one year before the event happens or
  • within one year after the end of the income year in which the event happens.

This period may be extended in special circumstances.

Start of example

Example: Roll-over applies

Trish paid for the repair of an asset for which she was compensated after part of it was destroyed on 1 September 2000. Trish's expenditure qualifies for the roll-over concession if it was incurred any time during the period 1 September 1999 to 30 June 2002.

The replacement asset need not be identical to the one it is replacing. However, for roll-over to apply, you must use it in the same business or for the same (or a similar) purpose as the one for which you used the original asset. Also, your replacement asset cannot become an item of trading stock nor can it be a depreciating asset.

End of example


Start of example

Example: Roll-over does not apply

Denise receives money when her manufacturing business premises are destroyed. She buys a rental property with this money.

Denise cannot access the roll-over concession because she does not use the rental property for the same or similar purpose as her old business premises.

End of example