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A capital gain or capital loss you make from any of the
following is disregarded:
- a car (that is, a motor vehicle designed to carry a load of less
than one tonne and fewer than nine passengers) or motor cycle or
similar vehicle;
- a decoration awarded for valour or brave conduct, unless you
paid money or gave any other property for it;
- collectables acquired for $500 or less;
- a capital gain from a personal use asset acquired for $10,000 or
less;
- any capital loss from a personal use asset;
- CGT assets used solely to produce exempt income or some amounts
of non-assessable non-exempt income;
- a CGT asset that is your trading stock at the time of a CGT
event;
- shares in a pooled development fund;
- compensation or damages you receive for any:
- wrong or injury you suffer in your occupation
- wrong, injury or illness you or your relatives suffer
- compensation you receive under the firearms surrender
arrangements;
- winnings or losses from gambling, a game or a competition with
prizes;
- a reimbursement or payment of your expenses (but not for the
loss, destruction or transfer of an asset) under a scheme
established by an Australian government agency, a local
government body or foreign government agency. The scheme needs
to be established under an Act or legislative instrument (for
example, regulations or local government by-laws);
- a reimbursement or payment of expenses under the Unlawful
Termination Assistance Scheme or the Alternative Dispute
Resolution Assistance Scheme;
- a reimbursement or payment of your expenses under the General
Practice Rural Incentives Program or the Sydney Aircraft Noise
Insulation Project;
- a reimbursement or payment made under the M4/M5 Cashback Scheme;
- a re-establishment grant made under section 52A of the Farm
Household Support Act 1992;
-
- a dairy exit payment under the Farm Household Support Act 1992;
- a sugar industry exit grant paid under the Sugar Industry Reform
Program;
- payments made under the German Forced Labour Compensation
Programme (GFLCP) and certain payments or property received by
Australian residents after 30 June 2001 as a result of
persecution during the Second World War;
- some types of testamentary gifts;
- any capital gain or capital loss that would otherwise arise from
the assignment to the Commonwealth of a right in relation to a
general insurance policy held with an HIH company, the trustee
of the HIH trust or a prescribed entity;
- any capital gain or capital loss you make from rights being
created in you or your rights ending in relation to the making
of a superannuation agreement (as defined in the Family Law Act
1975), the termination or setting aside of such an agreement or
such an agreement otherwise coming to an end;
- any capital gain or capital loss you make from the ending of
rights that directly relate to the breakdown of your marriage or
de facto marriage, including if you receive cash as part of a
marriage breakdown settlement;
- any capital gain or capital loss that a complying superannuation
entity makes from a CGT event happening in relation to a
segregated current pension asset;
- in certain circumstances, a general insurance policy, a life
insurance policy or an annuity instrument;
- the transfer of a superannuation interest in a small
superannuation fund to another small superannuation fund on the
breakdown of a marriage, but not a de facto marriage; or
- your gain on disposal of eligible venture capital investments,
if you are a qualifying investor.
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You may reduce your capital gain if, because of a CGT event, you
have included an amount in your assessable income other than as
a capital gain. For example, if you make a profit on the sale of
land that is included in your assessable income as ordinary
income, you don't also include that profit as a capital gain.
Several concessions allow you to disregard part or all of a
capital gain made from an active asset you use in your small
business.
You disregard any capital loss you make:
- from the expiry, forfeiture, surrender or assignment of a lease
if the lease is not used solely or mainly for producing
assessable income;
- from a payment to any entity of personal services income that is
included in an individual's assessable income under the
alienation of personal services income provisions, or any other
amount attributable to that income; and
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Many capital gains tax (CGT) assets are easily recognisable -
for example, land, shares in a company and units in a unit
trust. Other CGT assets are not so well understood - for
example, contractual rights, options, foreign currency and
goodwill. CGT assets fall into three categories: collectibles,
personal use assets and other assets.
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You dispose of a CGT asset if a change of ownership occurs from
you to another entity, whether because of some act or event or
by operation of law. However, a change of ownership doesn't
occur:
- if you stop being the legal owner of the asset but continue to
be its beneficial owner; or
- merely because of a change of trustee.
Time of the event:
- when you enter into the contract for the disposal; or
- if there is no contract - when the change of ownership occurs.
A capital gain or capital loss you make is disregarded if:
- if you acquired the asset before 20 September 1985; or
- for a lease that you granted:
- it was granted before that day; or
- if it has been renewed or extended - the start of the last
renewal or extension occurred before that day.
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Our dedicated team can assist you with queries relating to
any capital gains or losses, as well as other legal and
accounting matters. Complete
and submit the Express Enquiry form on the top right hand side
of this page and we will contact you to discuss your enquiry
or call us on 1300 QUINNS (1300 784 667) +61 2 9223 9166 to arrange an
appointment. |
