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Amalgamation of title

Last updated 7 July 2013

The amalgamation of the titles to various blocks of land that you own does not result in a CGT event happening.

Land you acquired before 20 September 1985 that is amalgamated with land acquired on or after that date retains its pre-CGT status.

Example 61: Amalgamation of title

On 1 April 1984, Robert bought a block of land. On 1 June 2008, he bought another block adjacent to the first one. Robert amalgamated the titles to the two blocks into one title.

Robert is taken to have two separate assets. The first block continues to be treated as a pre-CGT asset.

Examples of CGT calculations affecting real estate

There are a number of other examples in this guide that explain how to calculate your capital gain or capital loss on the sale of real estate:

  • calculation of capital gain (including worksheet), where a person can choose the indexation or discount method to calculate their capital gain, see example 13
  • calculation of capital gain on property owned for 12 months or less, see example 9
  • recoupment of expenditure affecting CGT cost base calculation, see example 6
  • deductions affecting CGT cost base calculations, see example 53 and example 54.