Income Tax Assessment Act 1997



Division 104 - CGT events  

Subdivision 104-F - Leases  

SECTION 104-110   Granting a lease: CGT event F1  

CGT event F1 happens if a lessor grants, renews or extends a lease.

Note 1:

Other CGT events can apply to leases. An assignment of a lease is an example of CGT event A1.

Note 2:

There are special rules that apply to some lease transactions: see Division 132 .

The time of the event is:

(a) for the grant of a lease:

(i) when the contract for the lease is entered into; or

(ii) if there is no contract - at the start of the lease; or

(b) for a renewal or extension - at the start of the renewal or extension.


The lessor makes a capital gain if the *capital proceeds from the grant, renewal or extension are more than the expenditure it incurred on the grant, renewal or extension. It makes a capital loss if those capital proceeds are less .

The expenditure can include giving property: see section 103-5 . However, it does not include an amount you have received as *recoupment of it and that is not included in your assessable income, or an amount to the extent that you have deducted or can deduct it. Exception

The lessor can choose to apply section 104-115 to certain long term leases. If it does so, this section does not apply.


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