Private ruling: Capital gains tax - disposal of asset
Date of advice: 9 February 2026
Published: 23 March 2026
Ruling period: For the income year ending DDMMYYYY
Date scheme commenced: DDMMYYYY

Ruling: Q1: Did capital gains tax (CGT) event A1 occur when you disposed of your manufactured home? | A1: Yes.

Relevant facts and circumstances: You and your spouse (XX and XX) purchased a manufactured home on DDMMYYYY for $X. The manufactured home was purchased for your relative to reside in and has never been your main residence. The manufactured home has never been used to produce assessable rental income. The manufactured home included furnishings such as curtains, light fittings and carpets. The manufactured home is affixed to the land on approved footings with plumbing, electrical and other elements connected according to local regulations. No stamp duty was paid on either the purchase or disposal transactions. Council rates were not charged during the ownership period as you do not own the land on which the manufactured home sits in the X Leisure Village situated at Site X. Weekly site fees were paid to the leisure village for the use of their land under a site agreement. Leasing fees and a bond were also paid at the time of purchase in YYYY. After your relative passed away, the manufactured home was sold to a third party under a Deed of Agreement made on DDMMYYYY for $X. The approval to grant of transfer of the existing site agreement by the leisure village manager, from you as the vendor to the purchaser may be sought separately as the lease or right to occupy the land does not form part of the disposal transaction.

Relevant legislative provisions: Income Tax Assessment Act section 104-10 | Income Tax Assessment Act section 108-5

Reasons for decision: Summary: CGT events are the different types of transactions that may result in a capital gain or capital loss occurring. The most common CGT event is A1 for the disposal of a CGT asset. 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 the law. The timing of when the CGT event is when you enter into the contract for the disposal (Section 104-10 of the Income Tax Assessment Act 1997 (ITAA 1997). Any kind of property is considered to be a CGT asset under section 108-5 of the ITAA 1997. You will make a capital gain if the capital proceeds from the disposal are more than the asset's cost base. You make a capital loss if those capital proceeds are less than the asset's cost base. In your case, the disposal of the manufactured home is considered to trigger CGT event A1 where you have made a capital gain due to the capital proceeds being more than what you paid for the CGT asset when it was acquired.