Reducing your capital proceeds

You reduce your capital proceeds from a CGT event if:

  • you are not likely to receive some or all of the proceeds
  • the non-receipt of some or all of the proceeds is not due to anything you have done or failed to do
  • you took all reasonable steps to get payment.

Provided you are not entitled to a tax deduction for the amount you repaid, your capital proceeds are also reduced by:

  • any part of the proceeds that you repay, or
  • any compensation you pay that can reasonably be regarded as a repayment of the proceeds.

If you are registered for GST and you receive payment when you dispose of a CGT asset, any GST payable is not part of the capital proceeds.

    Last modified: 21 Jun 2016QC 17160