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Capital Gains Tax Assets
CGT Assets are defined in s 108-5 of the Income Tax Assessment Act 1997
as "any kind of property" or "a legal or equitable right that is not
property."
Specific examples of CGT assets listed in the legislation include:
Most often, a tax payer will be faced with a capital gains tax bill on
the sale of shares or real property. Before disposing of any property,
taxpayers should be aware of the CGT implications, paying particular
attention to the CGT holding rule which may entitle a taxpayer to a
CGT discount.
Collectables
Collectables for
CGT purposes are mainly kept
for personal use or enjoyment and include artwork; jewelry; antiques;
coins; medallions, rare folios, books or manuscripts; and postage
stamps. Losses from the disposal of collectables cannot be used to
offset against other capital gains. They must be only be offset against
gains from the disposal of other collectables.
Unit Trusts
A unit holder does not have an interest in the underlying property of a
unit trust for CGT purposes. It is only the unit itself that is a CGT
asset to the taxpayer.
Personal Use Assets
Personal use assets is a CGT asset that is kept mainly for the personal
use of the taxpayer, and is not a collectable. If it is acquired for
less than $10,000 it is not subject to CGT on its disposal.
There are a number of
exempt assets including
main residence exemption.
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