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Last updated 24 February 2020

The exemptions listed below allow you to reduce or disregard a capital gain or capital loss you make from certain CGT events.

General exemptions

A capital gain or capital loss you make from any of the following is disregarded:

  • a car (that is, a motor vehicle designed to carry a load of less than one tonne and fewer than nine passengers) or motor cycle or similar vehicle
  • a decoration awarded for valour or brave conduct unless you paid money or gave any other property for it
  • collectables acquired for $500 or less
  • a capital gain from a personal use asset acquired for $10,000 or less
  • any capital loss from a personal use asset
  • CGT assets used solely to produce exempt income
  • shares in a pooled development fund
  • compensation or damages you receive for any wrong or injury you suffer in your occupation
  • compensation or damages you receive for any wrong, injury or illness you or your relatives suffer
  • compensation you receive under the firearms surrender arrangements
  • winnings or losses from gambling, a game or a competition with prizes
  • an amount you receive as reimbursement or payment of your expenses under the General Practice Rural Incentives Program or the Sydney Aircraft Noise Insulation Project
  • a CGT asset that is your trading stock at the time of a CGT event
  • a re-establishment grant made under section 52A of the Farm Household Support Act 1992
  • a dairy exit payment under the Farm Household Support Act 1992
  • a reimbursement or payment made under the M4/ M5 Cashback Scheme
  • all payments made under the German Forced Labour Compensation Programme (GFLCP)-including to a relative or heir of the victim (refer Class Ruling CR 2002/59 - Income tax: compensation payments for Holocaust survivors and their relatives-remembrance, responsibility and future foundation)
  • some types of testamentary gifts
  • any capital gain or capital loss that would otherwise arise from the assignment of a right in relation to a general insurance policy held with an HIH company to the Commonwealth, the trustee of the HIH trust or a prescribed entity, or
  • in certain circumstances, a general insurance policy, a life insurance policy or an annuity instrument.

Other exemptions

Any capital gain you make may be reduced if, because of a CGT event, an amount has been included in your assessable income other than as a capital gain.

Any capital loss you make from the following is disregarded:

  • the expiry, forfeiture, surrender or assignment of a lease if the lease is not used solely or mainly for the purpose of producing assessable income
  • a payment to an entity of personal services income that is included in an individual's assessable income (or any other amount attributable to that income).

A capital loss made by an exempt entity is also disregarded.

Specific exemption-main residence

You can ignore a capital gain or capital loss you make from a CGT event relating to a dwelling that was your main residence. This can change, however, depending on how you came to own the dwelling and what you have done with it-for example, if you rented it out (see chapter 6 for more information).

Specific exemption-small business concessions

There are a range of concessions that allow you to disregard in whole or in part a capital gain from an active asset that you use in your small business. For more information on these concessions see the publication Capital gains tax concessions for small business.