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  • Capital gains tax

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    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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    If you acquired your rental property, or depreciating assets used in relation to your rental property, after 19 September 1985, capital gains tax may apply when you dispose of the property and the depreciating assets.

    The law relating to the treatment of capital gains tax was amended with effect from 11.45am by legal time in the Australian Capital Territory on 21 September 1999. The amendments alter the way in which capital gains and losses are, or will be, treated for tax purposes.

    Generally, you do not make a capital gain or capital loss if you dispose of a depreciating asset after 11.45 am on 21 September 1999.

    Note: An amount may still be included in assessable income or a deduction allowed in the income year in which the asset is disposed of under the rules dealing with depreciating assets (see Guide to depreciating assets).

    If you disposed of a rental property and you have claimed capital works deductions for construction expenditure (see Capital works (special building write-off) deductions), those deductions may be excluded from the cost base or reduced cost base of the property. See Deductions affecting capital gains tax cost base calculations.

    For more information, see the publication Guide to capital gains tax.

    Last modified: 11 Dec 2019QC 16578