Income Tax Assessment Act 1997
You can make a capital gain or loss only if a CGT event happens. 100-20(2)
There are a wide range of CGT events. Some happen often and affect many different taxpayers. Others are rare and affect only a few.
|Some examples of CGT events|
|Situation||Event||Which CGT event?|
|You own shares you acquired on or after 20 September 1985||You sell them||CGT event A1|
|You sell a business||You agree with the purchaser not to operate a similar business in the same area||CGT event D1|
|You are a lessor||You receive a payment for changing the lease||CGT event F5|
|You own shares in a company||The company makes a payment (not a dividend) to you as a shareholder||CGT event G1|
A summary of all the CGT events is in section 104-5 .Identifying the time of a CGT event 100-20(3)
The specific time when a CGT event happens is important for various reasons: in particular, for working out whether a capital gain or loss from the event affects your income tax for the current or another income year.
If a CGT event involves a contract, the time of the event will often be when the contract is made , not when it is completed.
The time of each CGT event is explained early in the relevant section in Division 104 .