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Advice under development – capital gains tax issues

We are developing advice and guidance on the following capital gains tax issues.

Last updated 1 May 2025

[3953] Back-to-back CGT rollovers [updated]

Title

Draft Practical Compliance Guideline

Back-to-back CGT roll-overs – ATO compliance approach

Purpose

This draft Guideline will explain when we are more likely to apply compliance resources to consider potential tax risks, including the application of Part IVA of the Income Tax Assessment Act 1936 (the general anti-avoidance provisions of the income tax law) to an arrangement that comprises multiple CGT rollovers.

Expected completion

Late 2025

Comments

Estimated completion in late 2025 is subject to the High Court’s finalisation of the appeal of the Full Federal Court’s decision in AusNet Services Limited v Commissioner of Taxation [2025] FCAFC 21.

Contact

Tara McLachlan, Private Wealth

Phone: (07) 3149 5339

Tara.McLachlan@ato.gov.au

[4172] Application of CGT event K6

Title

Addendum to Taxation Ruling

Taxation Ruling TR 2004/18 Income tax: capital gains: application of CGT event K6 (about pre-CGT shares and pre-CGT trust interests) in section 104-230 of the Income Tax Assessment Act 1997

Purpose

The addendum will revise aspects of TR 2004/18 about how the capital gain is calculated when a CGT event K6 happens. It will focus on the interpretation and application of subsection 104-230(6) of the Income Tax Assessment Act 1997, including the approach to working out which items of post-CGT property relevant capital proceeds are reasonably attributable to.

Expected completion

To be advised

Comments

The draft update to Taxation Ruling TR 2004/18DC Income tax: capital gains: application of CGT event K6 (about pre-CGT shares and pre-CGT trust interests) in section 104-230 of the Income Tax Assessment Act 1997 published on 11 December 2024. Comments period closed on 14 February 2025.

Contact

Heran Kim, Private Wealth

Phone: (02) 9685 8516

Heran.Kim@ato.gov.au

[4188] Deceased estates: 'double death' [updated]

Title

Draft Taxation Determination

CGT consequences under Division 128 of the Income Tax Assessment Act 1997 when a beneficiary of a deceased estate dies before a CGT asset of the deceased estate passes to them

Purpose

This guidance will clarify the Commissioner’s view on the application of the CGT rollover concession in Division 128 of the Income Tax Assessment Act 1997 when a beneficiary of a deceased estate dies before a CGT asset of the deceased estate passes to them.

Expected completion

Late 2025

Contact

Danijela Jablanovic, Individuals and Intermediaries

Phone: (07) 3213 5864

Danijela.jablanovic@ato.gov.au

[4189] Deceased estates: right to occupy [updated]

Title

Draft Taxation Determination

What constitutes a right to occupy a dwelling 'under a deceased’s will' for the purpose of obtaining the CGT exemption in section 118-195 of the Income Tax Assessment Act 1997?

Purpose

This guidance will provide the Commissioner’s view on when an individual has a right to occupy a dwelling under a deceased’s will for the purposes of subsection 118-195(1) of the Income Tax Assessment Act 1997 to obtain a CGT main residence exemption.

Expected completion

Mid 2026

Contact

Penny Hextall, Individuals and Intermediaries

Phone: (03) 8601 9423

Penny.Hextall@ato.gov.au

QC50316