Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_1:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 2/9)
Character Range: 7790–10791

are involved with any of the following, you may have a CGT liability now or at some time in the future:

    * leases                     * marriage breakdown
    * inheritance                * working from home
    * subdividing land           * shares
    * goodwill                   * a civil court case
    * contracts                  * trusts
    * options                    * bankruptcy
    * a company liquidation      * incorporating a company
    * leaving Australia

100‑15  Overview of Steps 1 and 2

Step 1—Have you made a capital gain or a capital loss?

100‑20  What events attract CGT?

 (1) You can make a capital gain or loss only if a CGT event happens.

 (2) There are a wide range of CGT events. Some happen often and affect many different taxpayers. Others are rare and affect only a few.

Some examples of CGT events
Situation                                                  Event                                                                            Which CGT event?
You own shares you acquired on or after 20 September 1985  You sell them                                                                    CGT event A1
You sell a business                                        You agree with the purchaser not to operate a similar business in the same area  CGT event D1
You are a lessor                                           You receive a payment for changing the lease                                     CGT event F5
You own shares in a company                                The company makes a payment (not a dividend) to you as a shareholder             CGT event G1

A summary of all the CGT events is in section 104‑5.

Identifying the time of a CGT event

 (3) The specific time when a CGT event happens is important for various reasons: in particular, for working out whether a capital gain or loss from the event affects your income tax for the current or another income year.

  If a CGT event involves a contract, the time of the event will often be when the contract is made, not when it is completed.

The time of each CGT event is explained early in
the relevant section in Division 104.

100‑25  What are CGT assets?

 (1) Most CGT events involve a CGT asset. (For many, there is an exception if the CGT asset was acquired before 20 September 1985.) However, many CGT events are concerned directly with capital receipts and do not involve a CGT asset.

See the summary of the CGT events in section 104‑5.

 (2) Some CGT assets are reasonably well‑known:

 • land and buildings, for example, a weekender;

 • shares;

 • units in a unit trust;

 • collectables which cost over $500, for example, jewellery or an artwork;

 • personal use assets which cost over $10,000, for example, a boat.

 (3) Other CGT assets are not so well‑known. For example:

 • your home;

 • contractual rights;

 • goodwill;

 • foreign currency.

For a full explanation of what things are CGT assets: see Division 108.

100‑30  Does an