Necessary connection with Australia

Warning:

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

End of attention

Assets you may own that have a necessary connection with Australia include:

• land or a building in Australia (or an interest in land or a building)
• a CGT asset you have used in carrying on a business through a permanent establishment in Australia
• a share in a private company that is an Australian resident company for the income year in which the CGT event happens
• a share, or an interest in a share, in a public company that is an Australian resident company and in which you and your associates have owned at least 10% of the value of the shares at any time during the five years before the CGT event happens
• a unit in a unit trust that is a resident trust and in which you and your associates have owned at least 10% of the issued units at any time during the five years before the CGT event happens
• a unit or other interest in a trust that is a resident trust for CGT purposes for the income year in which the CGT event happens, and
• an option or right to acquire any of the preceding CGT assets.

Assets that do not fall within one of the above categories – for example, land or a building overseas or shares in a foreign company – do not have the necessary connection with Australia.