Personal use assets

Warning:

This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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A personal use asset is:

• a CGT asset, other than a collectable, that is used or kept mainly for the personal use or enjoyment of you or your associate(s)
• an option or a right to acquire a personal use asset
• a debt resulting from a CGT event involving a CGT asset kept mainly for your personal use and enjoyment, or
• a debt resulting from your doing something other than gaining or producing your assessable income or carrying on a business.

Personal use assets include such items as boats, furniture, electrical goods and household items. Land and buildings are not personal use assets. Any capital loss you make from a personal use asset is disregarded.

If a CGT event happened to a personal use asset during or after the 1998–99 income year, any capital gain you make is disregarded if you acquired the asset for $10,000 or less. If you dispose of a number of personal use assets individually that would usually be sold as a set, you get the exemption only if you acquired the set for $10,000 or less.

Other assets

Assets that are not collectables or personal use assets include:

• land
• shares in a company
• rights and options
• leases
• units in a unit trust
• goodwill
• licences
• convertible notes
• your home (see Exemptions)
• contractual rights
• foreign currency, and
• any major capital improvement made to certain land or pre-CGT assets.