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  • Advice under development – capital gains tax issues

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

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    [3953] Back-to-back CGT rollovers

    Title

    Planned sequential transactions and the 'nothing else' condition of a roll-over

    Purpose

    This guidance will provide the Commissioner’s view on the interpretation and application of the ‘nothing else’ condition in CGT rollovers.

    Expected completion

    Mid 2023

    Comments

    Paragraphs 2, 3 and 55, and Examples 3 and 4 of Taxation Determination TD 2020/6 Income tax: what is a 'restructuring' for the purposes of subsection 125-70(1) of the Income Tax Assessment Act 1997? discuss aspects of sequential transactions.

    Contact

    Adam Pritchard, Public Groups and International

    Phone: (02) 9374 2775

    Adam.Pritchard@ato.gov.au

    [3964] Appointment of capital – CGT events E5 or E7

    Title

    Draft Taxation Determination

    Does CGT event E5 or E7 happen if the trustee of a discretionary trust appoints an amount of capital to a beneficiary (for example, by special resolution) and later makes a capital distribution in Australian currency in satisfaction of the appointed interest?

    Purpose

    The draft Determination will set out the Commissioner’s preliminary view on the CGT consequences of:

    • appointing an amount of capital to a beneficiary
    • the subsequent distribution of Australian currency to the beneficiary in satisfaction of the capital interest.

    Expected completion

    To be advised

    Comments

    The release of this and related Determinations (items 3965 and 3966) has been delayed due to higher priority work.

    Contact

    Justin Dearness, Office of the Chief Tax Counsel

    Phone: (07) 3213 5745

    Justin.Dearness@ato.gov.au

    [3965] Australian currency denominated asset – CGT events E5 to E7

    Title

    Draft Taxation Determination

    Can an asset with a face value in Australian currency (including an Australian currency banknote or coin) be a CGT asset for CGT events E5 to E7?

    Purpose

    The draft Determination will set out the Commissioner's view on whether assets with a face value in Australian currency (including Australian currency itself) can be CGT assets for CGT events E5 to E7.

    Expected completion

    To be advised

    Comments

    The release of this and related Determinations (items 3964 and 3966) has been delayed due to higher priority work.

    Contact

    Justin Dearness, Office of the Chief Tax Counsel

    Phone: (07) 3213 5745

    Justin.Dearness@ato.gov.au

    [3966] Unit trust – CGT events E5 to E8

    Title

    Draft Taxation Determination

    What is the meaning of the term ‘unit trust’ in CGT events E5 to E8 and what are the interaction implications for other CGT events, in particular CGT events E4 and C2?

    Purpose

    The draft Determination will set out the Commissioner’s proposed view on:

    • what is a ‘unit trust’ for CGT events E5 to E8
    • its implications for other CGT events.

    Expected completion

    To be advised

    Comments

    The release of this and related Determinations (items 3964 and 3965) has been delayed due to higher priority work.

    Contact

    Justin Dearness, Office of the Chief Tax Counsel

    Phone: (07) 3213 5745

    Justin.Dearness@ato.gov.au

    [4030] Water rights

    Title

    Draft Taxation Determination

    Income tax: are water access entitlements taxable Australian real property under Division 855 of the Income Tax Assessment Act 1997?

    Purpose

    This draft Determination will clarify whether certain CGT assets, such as water access entitlements, are ‘taxable Australian real property’. This will provide certainty to foreign residents on whether a capital gain or loss from a CGT event that happens in relation to interests in water access entitlements is disregarded.

    Expected completion

    To be advised

    Comments

    Publication of the draft Determination has been delayed while we consider the various water access entitlements that are conferred by state and territory legislation.

    Contact

    Shelley McCann, Office of the Chief Tax Counsel

    Phone: (07) 3213 5634

    Shelley.McCann@ato.gov.au

    Last modified: 28 Nov 2022QC 50316