Private ruling: CGT - Title transfer
Date of advice: 22 January 2026
Published: 16 March 2026
Ruling period: Year ending 30 June 20YY | Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Will capital gains tax (CGT) event A1 occur when the title of the property is transferred to the intended owner under section 104-10 of the Income Tax Assessment Act 1997 (ITAA 1997) ? | A1: No. Section 102-20 of the ITAA 1997 provides that a capital gain or capital loss results from a CGT event occurring. Section 104-10 of the ITAA 1997 describes the most common CGT event, being CGT event A1. It states that CGT event A1 happens if you dispose 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 operation of the law. A CGT event A1 may arise when the title of a property is transferred. In your case, it was your intention to purchase Lot A (Unit B) from the developer, and you provided funds for the purchase of the property. You were issued correspondence from your real estate agent confirming the sale. However, when the property was purchased, the title of Lot B (Unit A) was issued to you instead. You have occupied Lot B (Unit A) for more than XX years and continue to treat the property as your main residence. You were only aware that this had occurred when you attempted to enter a contract to sell the property. Based on the facts, the Commissioner accepts that an administrative error occurred when the title of Lot B was incorrectly issued to you. Based on your circumstances, there has been no change in equitable ownership, and a CGT event will not occur when the legal property title of Lot B is transferred from you to the intended owner.

Relevant facts and circumstances: In MM/YY, you entered an off the plan contract to purchase Lot B of a property in a complex developed by Company A. On DD/MM/YYYY, the strata plan was registered for the property. Since 20YY, Lot B of the property has been marked as Unit A and Lot A of the property has been marked as Unit B. On DD/MM/YYYY, you were transferred the title to Lot B of the property. At all times, you believed that you were purchasing Lot A of the property. Upon settlement, you were granted the keys and possession to Lot A (Unit B) by Company A. On DD/MM/YYYY, Company B contacted Company C to advise that a deposit of $XXXX was being held for Unit B. Company B also issued a letter to you advising that your solicitor had confirmed that contracts had been exchanged and that they would continue to be in contact with your solicitor. This letter was also addressed to Unit B. You have occupied Lot A (Unit B) for several years and continue to treat the property as your main residence. In MM/20YY, you entered a contract to sell Lot A (Unit B). During this time, the purchaser's solicitor identified the discrepancies in the boundaries of Lot A and Lot B on the strata plan, and you were made aware that you did not hold the title for Lot A and instead held the title for Lot B. The current registered proprietor of Lot A (Unit B) is Company D. You intend on transferring the title of Lot B to Company D and Company D intends on transferring the title of Lot A to you. There is no relationship between you and Company D. Neither you nor Company D intended to gift the properties to each other. The floor plan of the property indicates that Unit A and Unit B of the property are units of similar dimensions.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 104-10