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How and when CGT is triggered, such as when an asset is sold, lost or destroyed.

What is a CGT event?

When you dispose of an asset that is subject to capital gains tax (CGT), it is called a CGT event. This is the point at which you make a capital gain or loss.

Common disposals that will trigger a CGT event include:

• selling an asset
• trading, exchanging or swapping assets
• loss or destruction of an asset or creating contractual or other rights (this is known as an involuntary disposal).

The type of CGT event that applies to your situation may affect:

• the time when the CGT event happens
• how to calculate your capital gain or loss.

Sale or disposal of asset

Selling or disposing of an asset will trigger a CGT event and you may have a capital gain or capital loss.

If there is a contract of sale, the CGT event happens when you enter into the contract. For example, if you sell a house, the CGT event happens on the date of the contract, not when you settle.

If there is no contract of sale, the CGT event is usually when you stop being the asset's owner. For example, if you sell shares, the CGT event happens on the date of sale.

Your capital gain or loss for an asset is usually the selling price less the original cost and certain other costs associated with acquiring, holding and disposing of the asset.

Loss, theft or destruction of asset

If your CGT asset is lost, stolen or destroyed:

• the CGT event happens when you first receive compensation for the loss, theft or destruction
• your capital gain is the amount of compensation less the asset’s original cost.

If you do not receive any compensation, the CGT event happens when the loss is discovered or the destruction occurred.

If you replace the asset with a similar asset, you may be able to defer (or 'roll over') your capital gain until another CGT event happens, such as selling the replacement asset.

All CGT events

All CGT events are listed below.

If more than one CGT event happens, you apply the rules for the one that best matches your situation.

For more information about the CGT events listed below see Division 104 of the  Income Tax Assessment Act 1997.

Disposal (A)

Hire purchase and similar agreements (B)

End of a CGT asset (C) – includes loss or destruction

Bringing a CGT asset into existence (D)

Trusts (E)

Leases (F)

Shares (G)

Special capital receipts (H)

Cessation of residency (I)

Rollovers (J)

Other CGT events (K)

Consolidations (L)