Event #

Event title (what)

Event description (how)

Timing of event (when)

Exceptions*

Page ref.

*includes exceptions, exemptions, rollover, priority; pre-CGT exceptions applicable for almost all events (15-15)
A1

A1

Disposal of a CGT asset

Disposal of a CGT asset

occurs where there is a disposal or part disposal of a

CGT asset

at the date the disposal contract is entered into; or

occurs as a result of compulsory acquisition by an

entity due to the operation of an Australian or foreign
law

the earliest of:

302

if there is no contract; when the change of ownership

occurs
rollover

303

a gain or loss is disregarded if

ownership of the asset does not pass
at or before the end of the agreement

303

a. when the taxpayer received compensation from

the entity; or
b. when the entity became the assets owner; or
c. when the entity entered it under a power of
compulsory acquisition; or
d. when the entity took possession under that power

B1

Use of enjoyment of a CGT asset

before title passes

occurs if a taxpayer enters into an agreement with

another entity under which:

when the other entity first obtains the use and

enjoyment of the asset

a. the right to the use and enjoyment of a CGT

asset owned by the taxpayer passes to the
other entity; and
b. title in the asset will or may pass to the other
entity at or before the end of the agreement
C1

Loss or destruction of a CGT asset

occurs where asset that is owned by the taxpayer is

lost or destroyed

when the taxpayer first receives compensation for the

loss or destruction; or

304

if no compensation is received, when the loss is

discovered or the destruction occurred
C2

Cancellation and surrender of a CGT

asset

occurs if ownership of an intangible asset ends,

because the asset:
a. is redeemed or cancelled;

when the taxpayer enters into the contract that

results in the ending of the asset, or if there is no
contract when the asset ends

c. expires;

End of an option to acquire shares

etc.

(applicable for a company, or a

trustee of a unit trust)

d. is abandoned, surrendered or forfeited;

c. acquire shares or units by

converting a convertible interest

e. is exercised (for options); or

d. exercise an option

f.

e. ..

is converted (for convertible interests)

where a company, or a trustee of a unit trust, grants

an entity an option to acquire shares in the company,
units in the unit trust or debentures in the company or
trust, and the option ends because:
a. it is not exercised by the due date;
b. it is cancelled; or
c. it is released or abandoned

304

b. exercise rights to acquire shares

or units

b. is released, discharged or satisfied;

C3

a. lease expires and you did not use

it mainly to produce assessable
income

when the option ends

305

Event #

Event title (what)

Event description (how)

Timing of event (when)

Exceptions*

Page ref.

at the time the contract is entered into; or

does not apply if:

306

if no contract, when the right is created

a. the right is created by borrowing

money or obtaining credit from
another entity;

*includes exceptions, exemptions, rollover, priority; pre-CGT exceptions applicable for almost all events (15-15)
D1

Creation of contractual or other rights

in another entity

whenever a taxpayer creates a contractual right or

other legal or equitable right in another entity

b. the right requires the taxpayer to

do something that gives rise to
another CGT event for the
taxpayer;
c. a company issues or allots equity
interests or non-equity shares in
the company;
d. the trustee of a unit trust issues
units in the trust;
e. a company grants an option to
acquire equity interests, notequity interests or debentures in
the company;
f.

D2

Granting an option to an entity

a right over property that requires one of the parties

to transfer the property if the other party exercises
the option

when the option is granted, renewed or extended

the trustee of a unit trust grants

an option to acquire units or
debentures in the trust

a. if the option is exercised, any

capital gain or loss arising from
the grant, renewal or extension of
the option is disregarded

307

b. does not apply to an option

created over shares, units or
debentures by a company or
trustee of a unit trust;
c. or where the option is granted
over a personal use asset or a
collectable
D3

Granting a right to income from

mining

occurs if the owner of a prospecting or mining

entitlement, or an interest in one, grants another
entity the right to receive assessable income from
operations permitted to be carried on by the
entitlement

when the right is granted

308

D4

Conservation covenants

landowners who receive consideration for entering

into covenants with governments and philanthropic
organisations to conserve their property for
environmental purposes

when consideration is received

308

Event #

Event title (what)

Event description (how)

Timing of event (when)

Exceptions*

Page ref.

*includes exceptions, exemptions, rollover, priority; pre-CGT exceptions applicable for almost all events (15-15)
E1

Creating a trust over a CGT asset

occurs if a taxpayer creates a trust over a CGT asset

when the trust over the asset is created

for trusts that are not unit trusts,

where the taxpayer is also the sole
beneficiary of the trust and absolutely
entitled to the asset as against the
trustee

308

for trusts that are not unit trusts,

where the taxpayer is also the sole
beneficiary of the trust and absolutely
entitled to the asset as against the
trustee

309

(Effectively, this involves a transfer of the asset to the

trustee)

E2

Transferring a CGT asset to a trust

occurs if a taxpayer transfers a CGT asset to an

existing trust

when the asset is transferred

E3

Converting a trust to a unit trust

occurs when a trust over a CGT asset is converted to

a unit trust and, immediately before the conversion, a
beneficiary was absolutely entitled to the asset as
against the trustee

when conversion occurs

309

E4

Capital payment for trust interest

payment of certain non-assessable amounts by the

trustee to a beneficiary who has a unit or an interest
in the trust as a CGT event

when payment is made

310

E5

Beneficiary becomes entitled to a

trust asset

where a beneficiary becomes absolutely entitled to a

CGT asset of a trust

when the beneficiary becomes absolutely entitled to

the asset

a. where the trust is either a unit

trust or a deceased estate

310

b. for the beneficiary any gain or

loss is disregarded if the
beneficiarys interest in the trust
capital was acquired for nil
expenditure other than by way of
assignment
E6

Disposal to beneficiary to end income

right

trustee transfers a CGT asset of the trust to a

beneficiary in return for the beneficiarys right to
receive trust income

when the asset disposal occurs

a unit trust or a deceased estate

311

E7

Disposal to beneficiary to end capital

interest

applies where the consideration for the trustee

disposing of a CGT asset of the trust to the
beneficiary is the beneficiarys interest in trust capital

when the asset disposal occurs

a. where the trust is either a unit

trust or a deceased estate

311

b. any capital gain or loss made by

the beneficiary is disregarded if
the beneficiary acquired the
capital interest for no expenditure
(except by way of assignment
from another entity);
c. any capital gain or loss made by
the trustee under this CGT event
is disregarded as a result of the
main residence exception

Event #

Event title (what)

Event description (how)

Timing of event (when)

Exceptions*

Page ref.

*includes exceptions, exemptions, rollover, priority; pre-CGT exceptions applicable for almost all events (15-15)
E8

Disposal by beneficiary of capital

interest

where a beneficiary, who did not give any money or

property to acquire an interest in the capital of the
trust, and who did not acquire their interest by
assignment, disposes of all or part of that interest to
another party not being the trustee

when the beneficiary enters into the contract for the

disposal, or if there is no contract, when the
beneficiary stops owning the interest

E9

Creating a trust over future property

if the taxpayer agrees for consideration that when

property comes into existence it will be held on trust

when consideration is received

F1

Granting a lease

where a lessor grants, renews or extends a lease and

can result in a capital gain or loss for the lessor

a. where a lease is granted

occurs when the lease contract is entered into or,
if no contract, at the start of the lease

a unit trust or a deceased estate

312

312
lessor can choose to apply CGT
event F2 to certain long-term leases
(50 years or more)

314

b. where an existing lease is renewed or

extended
occurs at the start of the renewal or extension
F2

Granting a long-term lease

where a lease over land is a long-term lease (50

years or more), the lessor may elect for CGT event
F2 to apply rather than event F1

when the lessor grants the lease, or at the start of the

renewal or extension

F3

Payments for changing a lease

where a lessor pays the lessee to have the lease

varied or a term waived; results in a capital loss for
the lessor

when the lease is varied or the term waived

CGT event F3 cannot apply to a

long-term lease where the lessor has
elected to apply event F2

315

F4

Payments for changing a lease

where a lessor pays the lessee to have the lease

varied or a term waived; results in a capital gain for
the lessee

when the lease is varied or the term waived

CGT event F3 cannot apply to a

long-term lease where the lessor has
elected to apply event F2

315

F5

Payments for changing a lease

where a lessor receives a payment for varying or

waiving a lease results in a capital gain or loss for
the lessor

when the lease is varied or the term waived

G1

Capital payment for shares

a. a company makes a payment to a shareholder;

when the company makes the payment

b. the payment is not a dividend under s. 6 or a

deemed dividend on liquidation under s. 47
of ITAA36; and
c. the payment is not included in the shareholders
assessable income

Can result in a capital gain for the shareholder in

these circumstances

314

315

CGT event A1 or C2 have priority

317

Event #

Event title (what)

Event description (how)

Timing of event (when)

Exceptions*

Page ref.

*includes exceptions, exemptions, rollover, priority; pre-CGT exceptions applicable for almost all events (15-15)
G3

Liquidator or administrator declares

shares or financial instruments
worthless

the companys liquidator or administrator declare in

writing that there are reasonable grounds to believe
that:

when the liquidator or administrator makes the

declaration

CGT event A1 or C2 have priority

317

a. for sharesthere will be no further distributions in

respect of the shares;
b. for financial instrumentsthe financial
instruments have no value or only negligible
value

Can result in a capital loss for the holder of shares

or other financial interests in a company
H1

Forfeiture of deposit

occurs where a deposit is forfeited because a

prospective sale or other transaction does not
proceed; and the plan for a such sale or other
transaction has been abandoned

when the deposit is forfeited AND abandonment

H2

Receipt for event relating to a CGT

asset

occurs if an act, transaction or event occurs in

relation to a CGT asset you own, and the act,
transaction or event does not result in an adjustment
to the assets cost base

when the act, transaction or event occurs

318

a. 104-155(5)

318

b. a company issuing shares or

granting share options;

*CGT event H2 is a last-resort

provision and does not apply
unless all other CGT events are
not applicable

c. the trustee of a unit trust issuing

units or granting options to
acquire units;
d. loans

I1

Australian residency ends

occur for each CGT asset owned by the taxpayer that

is not taxable Australian property where an
individual or company ceases to be a resident of
Australia

when the taxpayer stops being an Australian resident

choose under s. 104-165 to disregard

a capital gain or loss from CGT event
I1, and instead treat all their CGT
assets as taxable Australian property
(even those that do not meet the
definition)

319

I2

Australian residency ends

occur for each CGT asset owned by the taxpayer that

is not taxable Australian property where a trust
stops being a resident trust

when the taxpayer stops being an Australian resident

choose under s. 104-165 to disregard

a capital gain or loss from CGT event
I1, and instead treat all their CGT
assets as taxable Australian property
(even those that do not meet the
definition)

319

J2

Change in relation to replacement

asset or improved asset after a
rollover

where there is a change in the status of a

replacement active asset in a small business rollover

when the change in the status of the asset occurs

(change must be after the end of the replacement

asset period which is two years after the rollover was
obtained)

321

Event #

Event title (what)

Event description (how)

Timing of event (when)

Exceptions*

Page ref.

*includes exceptions, exemptions, rollover, priority; pre-CGT exceptions applicable for almost all events (15-15)
J5

J6

Failure to acquire replacement asset

after small business replacement
asset rollover

where a taxpayer who has previously deferred a gain

under the small business rollover fails to acquire a
replacement active asset or improve an existing
active asset by the end of the two-year period

at the end of the replacement asset period

Cost of acquisition of replacement

asset is not sufficient to cover
disregarded capital gain

where expenditure on replacement active assets and/

or improvements to existing active assets (or a
combination of both) is insufficient to cover the capital
gain rolled over

at the end of the replacement asset period

321

(two years after the last CGT event in the year in

which small business rollover relief is chosen)
321

(two years after the last CGT event in the year in

which small business rollover relief is chosen)

(for a taxpayer who has previously deferred a gain

under the small business rollover)
K2

Payment of debt by bankrupt

where part of the debt is repaid

when payment is received

322

just before the taxpayer dies

322

(re-instates part of the capital loss previously

disallowed in respect of a bankrupts debt)
K3

Asset passing to a tax-advantaged

entity after death

on the death of the taxpayer where a CGT asset

passes to a beneficiary who is a foreign resident, the
trustee of a complying superannuation entity or a taxexempt entity

(so any capital gain is taxed to the deceased and is

therefore a liability of the deceaseds estate)

For an asset passing to a foreign resident beneficiary,

CGT event K3 will only apply where the deceased
was a resident of Australia and the asset is not
taxable Australian property
K4

CGT asset becomes trading stock

deemed disposal of the CGT asset at market value

when an entity owns a CGT asset and subsequently
starts treating it as trading stock

when the entity starts to hold the asset as trading

stock

no CGT event, if the entity had

elected to treat the asset as having
been disposed of at cost

323

(Entity can elect cost of the CGT asset to be either

at cost or market value for the purpose of deemed
disposal - s. 70-30)
K5

Special collectable losses

where there is a fall in the market value of a

collectable that is owned by a company or a trust,
and the fall in market value is indirectly realised by
the taxpayer when either CGT events A1, C2 or E8
occur in relation to the taxpayers shares in the
company or interest in the trust

fall in market value is indirectly realised

323

Event #

Event title (what)

Event description (how)

Timing of event (when)

Exceptions*

Page ref.

*includes exceptions, exemptions, rollover, priority; pre-CGT exceptions applicable for almost all events (15-15)
K6

Pre-CGT shares or trust interest

where pre-CGT shares or trust interest is owned by a

taxpayer and a CGT event happens (generally A1);

when the other CGT event occurs

where:

324

a. some of the shares in the

company or units in the trust were
listed for quotation on an
Australian or foreign stock
exchange at all times during the
five-year period before the CGT
event occurred; or

and
just before happening of CGT event, the market
value of post-CGT shares or trust interest is at least
75 per cent of the net value of the company or trust

b. scrip for scrip rollover could have

been claimed if the shares or
units had been acquired on or
after 20 September 1985 rather
than before that date
K7

Balancing adjustment events for

depreciating assets

arises if a balancing adjustment event occurs to a

depreciating asset that has been used for a nontaxable purpose, either wholly or partly

when the balancing adjustment event occurs

does not apply where:

325

a. the depreciating asset was used

by an entity carrying out
research and development
activities; or
b. there is rollover relief for a
balancing adjustment event under
s. 40-340; or
c. the asset is depreciable under
Subdivision 40-F (water facilities,
horticultural plant or grapevines);
or
d. the asset is depreciable under
Subdivision 40-G (landcare
operations, electricity connections
or telephone lines)

K8

Direct value shifts

where there has been a direct value shift that affects

an equity or loan interest in a company or trust

when direct value shift occurs

K10

Certain short-term forex realisation

gains

short-term forex realisation gains where a CGT asset

is disposed of in return for foreign currency
consideration;

when the forex realisation event occurs

and
the time between the disposal and the due date for
payment of the foreign currency is 12 months or less

325
An entity can choose not to have the
short-term forex realisation gain and
loss rules apply (s. 775-80), in which
case the normal Division 775 rules
include forex realisation gains and
losses as assessable income/
allowable deductions and no CGT
event arises

326

Event #

Event title (what)

Event description (how)

Timing of event (when)

Exceptions*

Page ref.

*includes exceptions, exemptions, rollover, priority; pre-CGT exceptions applicable for almost all events (15-15)
K11

Certain short-term forex realisation

losses

short-term forex realisation losses where a CGT

asset is disposed of in return for foreign currency
consideration;
and
the time between the disposal and the due date for
payment of the foreign currency is 12 months or less

when the forex realisation event occurs

An entity can choose not to have the

short-term forex realisation gain and
loss rules apply (s. 775-80), in which
case the normal Division 775 rules
include forex realisation gains and
losses as assessable income/
allowable deductions and no CGT
event arises

326