Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_14:p25
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 14 (pt 25/40)
Character Range: 95445–98039

or *reduced cost base.

Example: You own land on which you intend to construct a manufacturing facility. A business promotion organisation pays you $50,000 as an inducement to start construction early.

 No contractual rights or obligations are created by the arrangement.

 The payment is made because of an event (the inducement to start construction early) in relation to your land.

Note: This event does not apply if any other CGT event applies: see section 102‑25.

 (2) The time of the event is when the act, transaction or event occurs.

 (3) You make a capital gain if the *capital proceeds because of the *CGT event are more than the *incidental costs you incurred that relate to the event. You make a capital loss if those *capital proceeds are less.

 (4) The costs can include giving property: see section 103‑5. However, they do not include an amount you have received as *recoupment of them and that is not included in your assessable income.

Exceptions

 (5) CGT event H2 does not happen if:

 (a) the act, transaction or event is the borrowing of money or the obtaining of credit from another entity; or

 (b) the act, transaction or event requires you to do something that is another *CGT event that happens to you; or

 (c) a company issues or allots *shares to you; or

 (d) the trustee of a unit trust issues units in the trust to you.

Subdivision 104‑I—Australian residency ends

Table of sections

104‑160 Individual or company stops being resident: CGT event I1
104‑165 Exception for individual who stops being resident
104‑170 Trust stops being a resident trust: CGT event I2

104‑160  Individual or company stops being resident: CGT event I1

 (1) CGT event I1 happens if you stop being an *Australian resident.

 (2) The time of the event is when you stop being one.

 (3) You need to work out if you have made a *capital gain or a *capital loss for each *CGT asset that you owned just before the time of the event, except one having the *necessary connection with Australia.

 (4) You make a capital gain if the market value of the asset (at the time of the event) is more than its *cost base. You make a capital loss if that market value is less than the asset's *reduced cost base.

Exception

 (5) A *capital gain or *capital loss you make is disregarded if you *acquired the asset before 20 September 1985.

Note 1: An individual may be able disregard the gain or loss if he or she was a short term resident: see section 104‑165.

Note 2: An individual can choose to disregard a capital gain or loss he or she makes until another CGT