Step 1: Decide whether a CGT event has happened



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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CGT events are the different types of transactions or events that may result in a capital gain or capital loss. A CGT event has happened if you have sold (or otherwise disposed of) your shares or units or other assets during 2005-06.

Examples of other CGT events that can happen to shares or units include:

  • when a company makes a payment other than a dividend to you as a shareholder, or when a trust or fund makes a non-assessable payment to you as a unit holder
  • when a liquidator or administrator declares that shares or financial instruments relating to a company are worthless (see appendix 1 for examples), and
  • when shares in a company are cancelled because the company is wound up.

In some cases, although CGT events may have happened to certain assets, such as assets acquired before 20 September 1985, any capital gains or capital losses from them are generally disregarded.

For more information about CGT events, see Guide to capital gains tax 2006 (NAT 4151-6.2006).

If a managed fund makes a capital gain and distributes part of that gain to you, you are treated as if you made a capital gain from a CGT event.

If you did not make a capital gain or capital loss from a CGT event during 2005-06, print X in the NO box at G item 17 on your tax return (supplementary section), or at G item 9 if you use the tax return for retirees. (Note: You cannot use Tax return for retirees 2006 if you had a distribution from a managed fund during the year.)

If you did make a capital gain or capital loss from a CGT event during 2005-06, print X in the YES box. If the CGT event happened to your shares or units and the event is covered in this guide (see About this guide), read on. Otherwise, see Guide to capital gains tax 2006.

Last modified: 06 Oct 2009QC 27788