Private ruling: CGT disposal - personal use asset
Date of advice: 8 October 2025
Published: 1 December 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the payment you received for selling your social media account included in your assessable income as ordinary income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No. The assessable income of a resident taxpayer includes income according to ordinary concepts (ordinary income) derived during the income year (section 6-5 of the ITAA 1997). Ordinary income has generally been held to include three categories, namely income from rendering personal services, income from property and income from carrying on a business. Other characteristics of income that have evolved from case law include receipts that are earned, are expected, are relied upon, or have an element of periodicity, recurrence or regularity. In your case, the payment you received for selling your social media account does not have the characteristics of ordinary income and is therefore not included in your assessable income. | Q2: Is the payment you received for selling your social media account included in your assessable income under the capital gains tax (CGT) provisions of the ITAA 1997? | A2: No. A CGT asset is any kind of property or a legal or equitable right that is not property. CGT event A1 in section 104-10 happens if you dispose of a CGT asset. You make a capital gain if your capital proceeds exceed the CGT asset's cost base. A capital gain you make from a 'personal use asset', or part of the asset, is disregarded if the first element of the asset's cost base is $10,000 or less (subsection 118-10(3) of the ITAA 1997). A personal use asset is a CGT asset that is used or kept mainly for your personal use or enjoyment (section 108-20 of the ITAA 1997). In your case, it is considered that your social media account was used for your personal use and enjoyment and was therefore a personal use asset. Therefore, any capital gain you made on the sale of your account is disregarded and not included in your assessable income.

Relevant facts and circumstances: You created a social media account over 10 years ago for the purpose of using it as your personal account. You did not pay anything to open the account. You were recently approached by someone who wanted to purchase your account. Up until that time, you did not realise that your account would have had any value. You reached agreement on a sale price and the sale proceeds were paid into your bank account.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 108-5 | Income Tax Assessment Act 1997 section 108-20 | Income Tax Assessment Act 1997 subsection 118-10(3)