• Appendix 1 Summary of CGT events

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    Disposal

    CGT event

    Time of event

    Capital gain

    Capital loss

    A1

    Disposal of a CGT asset

    when the disposal contract is entered into or, if none, when the entity stops being the asset's owner

    capital proceeds from disposal less the asset's cost base

    asset's reduced cost base less capital proceeds

    Hire purchase and similar agreements

    CGT event

    Time of event

    Capital gain

    Capital loss

    B1

    Use and enjoyment before title passes

    when use of the CGT asset passes

    capital proceeds less the asset's cost base

    asset's reduced cost base less capital proceeds

    End of a CGT asset

    CGT event

    Time of event

    Capital gain

    Capital loss

    C1

    Loss or destruction of a CGT asset

    when compensation is first received or, if none, when the loss is discovered or destruction occurred

    capital proceeds less the asset's cost base

    asset's reduced cost base less capital proceeds

    C2

    Cancellation, surrender and similar endings

    when the contract ending an asset is entered into or, if none, when an asset ends

    capital proceeds from the ending less the asset's cost base

    asset's reduced cost base less capital proceeds

    C3

    End of an option to acquire shares and so on

    when the option ends

    capital proceeds from granting the option less expenditure in granting it

    expenditure in granting the option less capital proceeds

    Bringing a CGT asset into existence

    CGT event

    Time of event

    Capital gain

    Capital loss

    D1

    Creating contractual or other rights

    when the contract is entered into or the right is created

    capital proceeds from creating the right less incidental costs of creating the right

    incidental costs of creating the right less capital proceeds

    D2

    Granting an option

    when the option is granted

    capital proceeds from the grant less expenditure to grant it

    expenditure to grant the option less capital proceeds

    D3

    Granting a right to income from mining

    when the contract is entered into or, if none, when the right is granted

    capital proceeds from the grant of right less the expenditure to grant it

    expenditure to grant the right less capital proceeds

    D4

    Entering into a conservation covenant

    when covenant is entered into

    capital proceeds from covenant less cost base apportioned to the covenant

    reduce cost base apportioned to the covenant less capital proceeds from covenant

    Trusts

    CGT event

    Time of event

    Capital gain

    Capital loss

    E1

    Creating a trust over a CGT asset

    when the trust is created

    capital proceeds from creating the trust less the asset's cost base

    asset's reduced cost base less capital proceeds

    E2

    Transferring a CGT asset to a trust

    when the asset is transferred

    capital proceeds from the transfer less the asset's cost base

    asset's reduced cost base less capital proceeds

    E3

    Converting a trust to a unit trust

    when the trust is converted

    market value of the asset at that time less its cost base

    asset's reduced cost base less that market value

    E4

    Capital payment for trust interest

    when the trustee makes the payment

    non-assessable part of the payment less the cost base of the trust interest

    no capital loss

    E5

    Beneficiary becoming entitled to a trust asset

    when the beneficiary becomes absolutely entitled

    for a trustee, market value of the CGT asset at that time less its cost base; for a beneficiary, that market value less the cost base of the beneficiary's capital interest

    for a trustee, reduced cost base of the CGT asset at that time less that market value; for a beneficiary, reduced cost base of the beneficiary's capital interest less that market value

    E6

    Disposal to a beneficiary to end an income right

    the time of the disposal

    for a trustee, market value of the CGT asset at that time less its cost base; for a beneficiary, that market value less the cost base of the beneficiary's right to income

    for a trustee, reduced cost base of the CGT asset at that time less that market value; for a beneficiary, reduced cost base of the beneficiary's right to income less that market value

    E7

    Disposal to a beneficiary to end capital interest

    the time of the disposal

    for a trustee, market value of the CGT asset at that time less its cost base; for a beneficiary, that market value less the cost base of the beneficiary's capital interest

    for a trustee, reduced cost base of the CGT asset at that time less that market value; for a beneficiary, reduced cost base of the beneficiary's capital interest less that market value

    E8

    Disposal by a beneficiary of capital interest

    when the disposal contract is entered into or, if none, when the beneficiary ceases to own the CGT asset

    capital proceeds less the appropriate proportion of the trust's net assets

    appropriate proportion of the trust's net assets less the capital proceeds

    E9

    Creating a trust over future property

    when the entity makes an agreement

    market value of the property (as if it existed when the agreement was made) less incidental costs in making the agreement

    incidental costs in making the agreement less the market value of the property (as if it existed when the agreement was made)

    Leases

    CGT event

    Time of event

    Capital gain

    Capital loss

    F1

    Granting a lease

    for granting a lease, when the entity enters into the lease contract or, if none, at the start of the lease; for a lease renewal or extension, at the start of the renewal or extension

    capital proceeds less the expenditure on grant, renewal or extension

    expenditure on grant, renewal or extension less capital proceeds

    F2

    Granting a long-term lease

    for granting a lease, when the lessor grants the lease; for a lease renewal or extension, at the start of the renewal or extension

    capital proceeds from the grant, renewal or extension less the cost base of the leased property

    reduced cost base of the leased property less the capital proceeds from the grant, renewal or extension

    F3

    Lessor pays lessee to get lease changed

    when the lease term is varied or waived

    no capital gain

    amount of expenditure to get lessee's agreement

    F4

    Lessee receives payment for changing a lease

    when the lease term is varied or waived

    capital proceeds less the cost base of lease

    no capital loss

    F5

    Lessor receives payment for changing a lease

    when the lease term is varied or waived

    capital proceeds less expenditure for variation or waiver

    expenditure for variation or waiver less capital proceeds

    Shares

    CGT event

    Time of event

    Capital gain

    Capital loss

    G1

    Capital payment for shares

    when the company pays a non-assessable amount

    payment less cost base of shares

    no capital loss

    G3

    Liquidator or administrator declares shares or financial instruments worthless

    when declaration is made

    no capital gain

    shares' or financial instruments' reduced cost base

    Special capital receipts

    CGT event

    Time of event

    Capital gain

    Capital loss

    H1

    Forfeiture of a deposit

    when the deposit is forfeited

    deposit less expenditure in connection with the prospective sale

    expenditure in connection with the prospective sale less deposit

    H2

    Receipt for an event relating to a CGT asset

    when the act, transaction or event occurred

    capital proceeds less the incidental costs

    incidental costs less capital proceeds

    Cessation of residency

    CGT event

    Time of event

    Capital gain

    Capital loss

    I1

    Individual or company stops being an Australian resident

    when the individual or company stops being an Australian resident

    for each CGT asset the person owns, its market value less its cost base

    for each CGT asset the person owns, its reduced cost base less its market value

    I2

    Trust stops being a resident trust

    when the trust ceases to be a resident trust for CGT purposes

    for each CGT asset the trustee owns, its market value less its cost base

    for each CGT asset the trustee owns, its reduced cost base less its market value

    Reversal of rollover

    CGT event

    Time of event

    Capital gain

    Capital loss

    J1

    Company stops being a member of a wholly owned group after a rollover

    when the company stops being a member of a wholly owned group after a rollover

    market value of the asset at the time of the event less its cost base

    reduced cost base of the asset less that market value

    J2

    Change for replacement asset or improved asset after a rollover under Subdivision 152-E

    when the change happens

    the amount mentioned in subsection 104-185(5)

    no capital loss

    J4

    Trust failing to cease to exist after rollover under Subdivision 124-N

    when the failure to cease to exist happens

    for the company, market value of the asset at the time the company acquired it less its cost base at that time

    for a shareholder, market value of the share at the time the shareholder acquired it less its cost base at that time

    for the company, reduced cost base of the asset at the time the company acquired it less its market value at that time

    for a shareholder, reduced cost base of the share at the time the shareholder acquired it less its market value at that time

    J5

    Failure to acquire replacement asset and to incur fourth element expenditure after a rollover under Subdivision 152-E

    at the end of the replacement asset period

    the amount of the capital gain that you disregarded under Subdivision 152-E

    no capital loss

    J6

    Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gain

    at the end of the replacement asset period

    the amount mentioned in subsection 104-198(3)

    no capital loss

    Other CGT events

    CGT event

    Time of event

    Capital gain

    Capital loss

    K2

    Bankrupt pays an amount for debt

    when payment is made

    no capital gain

    that part of the payment that relates to the denied part of a net capital loss

    K3

    Asset passing to a tax-advantaged entity

    when an individual dies

    market value of the asset at death less its cost base

    reduced cost base of the asset less that market value

    K4

    CGT asset starts being trading stock

    when the asset starts being trading stock

    market value of asset less its cost base

    reduced cost base of asset less that market value

    K5

    Special capital loss from a collectable that has fallen in market value

    when CGT event A1, C2 or E8 happens to shares in the company, or an interest in the trust, that owns the collectable

    no capital gain

    market value of the shares or interest (as if the collectable had not fallen in market value) less the capital proceeds from CGT event A1, C2 or E8

    K6

    Pre-CGT shares or trust interest

    when another CGT event involving the shares or interest happens

    capital proceeds from the shares or trust interest that are attributable to post-CGT assets owned by the company or trust, less the assets' cost bases

    no capital loss

    K7

    Balancing adjustment occurs for a depreciating asset that you used for purposes other than taxable purposes

    when the balancing adjustment event occurs

    termination value less cost times fraction

    cost less termination value times fraction

    K8

    Direct value shifts affecting your equity or loan interests in a company or trust

    the decrease time for the interests

    the capital gain worked out under section 725-365

    no capital loss

    K9

    Entitlement to receive payment of a carried interest

    when you become entitled to receive the payment

    capital proceeds from the entitlement

    no capital loss

    K10

    You make a forex realisation gain as a result of forex realisation event 2 and item 1 of the table in subsection 775-70(1) applies

    when the forex realisation event happens

    equal to the forex realisation gain

    no capital loss

    K11

    You make a forex realisation loss as a result of forex realisation event 2 and item 1 of the table in subsection 775-75(1) applies

    when the forex realisation event happens

    no capital gain

    equal to the forex realisation loss

    K12

    Foreign hybrid loss exposure adjustment

    just before the end of the income year

    no capital gain

    the amount stated in subsection 104-270(3)

    Consolidations

    CGT event

    Time of event

    Capital gain

    Capital loss

    L1

    Reduction under section 705-57 in tax cost setting amount of assets of entity becoming subsidiary member of consolidated group or MEC group

    just after entity becomes subsidiary member

    no capital gain

    amount of reduction

    L2

    Amount remaining after step 3A etc of 'joining allocable cost amount is negative'

    just after entity becomes subsidiary member

    amount remaining

    no capital loss

    L3

    Tax cost setting amounts for retained cost base assets exceed joining allocable cost amount

    just after entity becomes subsidiary member

    amount of excess

    no capital loss

    L4

    No reset cost base assets against which to apply excess of net allocable cost amount on joining

    just after entity becomes subsidiary member

    no capital gain

    amount of excess

    L5

    Amount remaining after step 4 of 'leaving allocable cost amount is negative'

    when entity ceases to be subsidiary member

    amount remaining

    no capital loss

    L6

    Error in calculation of tax cost setting amount for joining entity's assets

    start of the income year when the Commissioner becomes aware of the errors

    the net overstated amount resulting from the errors, or a portion of that amount

    the net understated amount resulting from the errors, or a portion of that amount

    L8

    Reduction in tax cost setting amount for reset cost base assets on joining cannot be allocated

    just after entity becomes subsidiary member

    no capital gain

    amount of reduction that cannot be allocated

    Last modified: 08 Jul 2013QC 25657