• Assets not included

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention
    Some interests in connected entities

    When calculating net value, you should exclude the shares, units and other interests (apart from debt) that you hold in an entity connected with you or your affiliate - this is because the net value of the CGT assets of the connected entity is already included in the test.

    Exclude also the liabilities relating to these excluded interests in connected entities, because these liabilities are not related to an asset included in the net asset value calculation.

    Changes resulting from the June 2009 amendments allow liabilities related to excluded interests in connected entities to be taken into account in working out the net asset value. The amendment applies to CGT events that happen on or after 23 June 2009.

    Non-business assets of affiliates or connected entities

    Any assets of an affiliate or an entity connected with an affiliate are excluded unless they are used, or held ready for use, in a business carried on by you or by an entity connected with you (but not if the entity is connected with you only through your affiliate).

    Personal use and superannuation assets

    If you are an individual, you should also disregard the following assets when working out the net value of your CGT assets:

    • assets being used solely for your personal use and enjoyment, or that of your affiliate
    • your own home, to the extent that you use it for private purposes (also, if your only other use is some incidental income-producing use, exclude your home from the net asset value test)
    • rights to amounts payable out of a superannuation fund or an approved deposit fund
    • rights to an asset of a superannuation fund or an approved deposit fund
    • insurance policies on your life.

    Where an asset is disregarded, any related liability is also disregarded because these liabilities are not related to an asset included in the net asset value calculation.

      Last modified: 28 Jun 2012QC 25888