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INCOME TAX ASSESSMENT ACT 1997 - SECT 104.5

Summary of the CGT events

 

CGT events

Event number and description


Time of event is:


Capital gain is:


Capital loss is:

A1 Disposal of a CGT asset



[See section 104-10]

when disposal contract is entered into or, if none, when entity stops being asset's owner

capital proceeds from disposal less asset's cost base

asset's reduced cost base less capital proceeds

B1 Use and enjoyment before title passes

[See section 104-15]

when use of CGT asset passes

capital proceeds less asset's cost base

asset's reduced cost base less capital proceeds

C1 Loss or destruction of a CGT asset




[See section 104-20]

when compensation is first received or, if none, when loss discovered or destruction occurred

capital proceeds less asset's cost base

asset's reduced cost base less capital proceeds

C2 Cancellation, surrender and similar endings

[See section 104- 25]

when contract ending asset is entered into or, if none, when asset ends

capital proceeds from ending less asset's cost base

asset's reduced cost base less capital proceeds

C3 End of option to acquire shares etc.


[See section 104-30]

when option ends

capital proceeds from granting option less expenditure in granting it

expenditure in granting option less capital proceeds

D1 Creating contractual or other rights

[See section 104- 35]

when contract is entered into or right is created

capital proceeds from creating right less incidental costs of creating it

incidental costs of creating right less capital proceeds

D2 Granting an option


[See section 104-40]

when option is granted

capital proceeds from grant less expenditure to grant it

expenditure to grant option less capital proceeds

D3 Granting a right to income from mining


[See section 104- 45]

when contract is entered into or, if none, when right is granted

capital proceeds from grant of right less expenditure to grant it

expenditure to grant right less capital proceeds

D4 Entering into a conservation covenant



[See section 104-47]

when covenant is entered into

capital proceeds from covenant less cost base apportioned to the covenant

reduced cost base apportioned to the covenant less capital proceeds from covenant

E1 Creating a trust over a CGT asset

[See section 104- 55]

when trust is created

capital proceeds from creating trust less asset's cost base

asset's reduced cost base less capital proceeds

E2 Transferring a CGT asset to a trust
[See section 104-60]

when asset transferred

capital proceeds from transfer less asset's cost base

asset's reduced cost base less capital proceeds

E3 Converting a trust to a unit trust
[See section 104- 65]

when trust is converted

market value of asset at that time less its cost base

asset's reduced cost base less that market value

E4 Capital payment for trust interest


[See section 104-70]

when trustee makes payment

non-assessable part of the payment less cost base of the trust interest

no capital loss

E5 Beneficiary becoming entitled to a trust asset









[See section 104-75]

when beneficiary becomes absolutely entitled

for trustee--market value of CGT asset at that time less its cost base;
for beneficiary--that market value less cost base of beneficiary's capital interest

for trustee--reduced cost base of CGT asset at that time less that market value;
for beneficiary--reduced cost base of beneficiary's capital interest less that market value

E6 Disposal to beneficiary to end income right









[See section 104-80]

the time of the disposal

for trustee--market value of CGT asset at that time less its cost base;
for beneficiary--that market value less cost base of beneficiary's right to income

for trustee--reduced cost base of CGT asset at that time less that market value;
for beneficiary--reduced cost base of beneficiary's right to income less that market value

E7 Disposal to beneficiary to end capital interest









[See section 104- 85]

the time of the disposal

for trustee--market value of CGT asset at that time less its cost base;
for beneficiary--that market value less cost base of beneficiary's capital interest

for trustee--reduced cost base of CGT asset at that time less that market value;
for beneficiary--reduced cost base of beneficiary's capital interest less that market value

E8 Disposal by beneficiary of capital interest


[See section 104-90]

when disposal contract entered into or, if none, when beneficiary ceases to own CGT asset

capital proceeds less appropriate proportion of the trust's net assets

appropriate proportion of the trust's net assets less capital proceeds

E9 Creating a trust over future property




[See section 104- 105]

when entity makes agreement

market value of the property (as if it existed when agreement made) less incidental costs in making agreement

incidental costs in making agreement less market value of the property (as if it existed when agreement made)

E10 Annual cost base reduction exceeds cost base of interest in AMIT

[See section 104-107A]

when reduction happens

excess of cost base reduction over cost base

no capital loss

F1 Granting a lease








[See section 104-110]

for grant of lease--when entity enters into lease contract or, if none, at start of lease;
for lease renewal or extension--at start of renewal or extension

capital proceeds less expenditure on grant, renewal or extension

expenditure on grant, renewal or extension less capital proceeds

F2 Granting a long term lease





[See section 104- 115]

for grant of lease--when lessor grants lease;
for lease renewal or extension--at start of renewal or extension

capital proceeds from grant, renewal or extension less cost base of leased property

reduced cost base of leased property less capital proceeds from grant, renewal or extension

F3 Lessor pays lessee to get lease changed

[See section 104-120]

when lease term is varied or waived

no capital gain

amount of expenditure to get lessee's agreement

F4 Lessee receives payment for changing lease
[See section 104- 125]

when lease term is varied or waived

capital proceeds less cost base of lease

no capital loss

F5 Lessor receives payment for changing lease

[See section 104-130]

when lease term is varied or waived

capital proceeds less expenditure in relation to variation or waiver

expenditure in relation to variation or waiver less capital proceeds

G1 Capital payment for shares
[See section 104-135]

when company pays non-assessable amount

payment less cost base of shares

no capital loss

G3 Liquidator or administrator declares shares or financial instruments worthless
[See section 104-145]

when declaration was made

no capital gain

shares' or financial instruments' reduced cost base

H1 Forfeiture of a deposit

[See section 104-150]

when deposit is forfeited

deposit less expenditure in connection with prospective sale

expenditure in connection with prospective sale less deposit

H2 Receipt for event relating to a CGT asset
[See section 104- 155]

when act, transaction or event occurred

capital proceeds less incidental costs

incidental costs less capital proceeds

I1 Individual or company stops being an Australian resident


[See section 104-160]

when individual or company stops being Australian resident

for each CGT asset the person owns, its market value less its cost base

for each CGT asset the person owns, its reduced cost base less its market value

I2 Trust stops being a resident trust



[See section 104-170]

when trust ceases to be resident trust for CGT purposes

for each CGT asset the trustee owns, its market value of asset less its cost base

for each CGT asset the trustee owns, its reduced cost base less its market value

J1 Company stops being member of wholly-owned group after roll-over
[See section 104- 175]

when the company stops

market value of asset at time of event less its cost base

reduced cost base of asset less that market value

J2 Change in relation to replacement asset or improved asset after a roll-over under Subdivision 152-E

[See section 104-185]

when the change happens

the amount mentioned in subsection 104-185(5)

no capital loss

J4 Trust fails to cease to exist after a roll-over under Subdivision 124-N

[See section 104-195]

when the failure happens

market value of asset less asset's cost base

reduced cost base of asset less asset's market value

J5 Failure to acquire replacement asset and to incur fourth element expenditure after a roll-over under Subdivision 152-E

[See section 104-197]

at the end of the replacement asset period

the amount of the capital gain that you disregarded under Subdivision 152-E

no capital loss

J6 Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gain

[See section 104-198]

at the end of the replacement asset period

the amount mentioned in subsection 104-198(3)

no capital loss

K1 As the result of an incoming international transfer of a Kyoto unit or an Australian carbon credit unit from your foreign account or your nominee's foreign account, you start to hold the unit as a registered emissions unit

[See section 104- 205]

when you start to hold the unit as a registered emissions unit

market value of unit less its cost base

reduced cost base of unit less its market value

K2 Bankrupt pays amount in relation to debt

[See section 104- 210]

when payment is made

no capital gain

so much of payment as relates to denied part of a net capital loss

K3 Asset passing to tax-advantaged entity

[See section 104- 215]

when individual dies

market value of asset at death less its cost base

reduced cost base of asset less that market value

K4 CGT asset starts being trading stock
[See section 104- 220]

when asset starts being trading stock

market value of asset less its cost base

reduced cost base of asset less its market value

K5 Special capital loss from collectable that has fallen in market value





[See section 104- 225]

when CGT event A1, C2 or E8 happens to shares in the company, or an interest in the trust, that owns the collectable

no capital gain

market value of the shares or interest (as if the collectable had not fallen in market value) less the capital proceeds from CGT event A1, C2 or E8

K6 Pre-CGT shares or trust interest







[See section 104- 230]

when another CGT event involving the shares or interest happens

capital proceeds from the shares or trust interest (so far as attributable to post-CGT assets owned by the company or trust) less the assets' cost bases

no capital loss

K7 Balancing adjustment occurs for a depreciating asset that you used for purposes other than taxable purposes
[See section 104- 235]

When balancing adjustment event occurs

Termination value less cost times fraction

Cost less termination value times fraction

K8 Direct value shifts affecting your equity or loan interests in a company or trust

[See section 104-250 and Division 725]

the decrease time for the interests

the gain worked out under section 725-365

no capital loss

K9 Entitlement to receive payment of a carried interest

[See section 104- 255]

when you become entitled to receive payment

capital proceeds from entitlement

no capital loss

K10 You make a forex realisation gain covered by item 1 of the table in subsection 775-70(1)

[See section 104-260]

when the forex realisation event happens

the forex realisation gain

no capital loss

K11 You make a forex realisation loss covered by item 1 of the table in subsection 775-75(1)

[See section 104- 265]

when the forex realisation event happens

no capital gain

the forex realisation loss

K12 Foreign hybrid loss exposure adjustment

[See section 104-270]

just before the end of the income year

no capital gain

the amount stated in subsection 104-270(3)

L1 Reduction under section 705-57 in tax cost setting amount of assets of entity becoming subsidiary member of consolidated group or MEC group

[See section 104-500]

Just after entity becomes subsidiary member

no capital gain

amount of reduction

L2 Amount remaining after step 3A etc. of joining allocable cost amount is negative

[See section 104- 505]

Just after entity becomes subsidiary member

amount remaining

no capital loss

L3 Tax cost setting amounts for retained cost base assets exceed joining allocable cost amount

[See section 104- 510]

Just after entity becomes subsidiary member

amount of excess

no capital loss

L4 No reset cost base assets against which to apply excess of net allocable cost amount on joining

[See section 104- 515]

Just after entity becomes subsidiary member

no capital gain

amount of excess

L5 Amount remaining after step 4 of leaving allocable cost amount is negative

[See section 104-520]

When entity ceases to be subsidiary member

amount remaining

no capital loss

L6 Error in calculation of tax cost setting amount for joining entity's assets: CGT event L6

[See section 104- 525]

start of the income year when the Commissioner becomes aware of the errors

the net overstated amount resulting from the errors, or a portion of that amount

the net understated amount resulting from the errors, or a portion of that amount

L8 Reduction in tax cost setting amount for reset cost base assets on joining cannot be allocated

[See section 104-535]

Just after entity becomes subsidiary member

no capital gain

amount of reduction that cannot be allocated

Note:          Subsection 230-310(4) (which deals with hedging financial arrangements) provides that in certain circumstances a CGT event is taken to have occurred in relation to a hedging financial arrangement at the same time as a CGT event actually occurs in relation to a hedged item covered by the arrangement.



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