Acquisition rules (CGT events)

Event Number

In these circumstances:

You acquire the asset at this time:

A1
(case 1)

An entity *disposes of a CGT asset to you (except where you compulsorily acquire it)

when the disposal contract is entered into or, if none, when the entity stops being the asset’s owner

A1.2
(case 2)

You compulsorily acquire a *CGT asset from another entity

B1

You enter into a hire purchase or similar agreement for a *CGT asset

when you first obtain the use and enjoyment of the asset (unless title does not pass to you when the agreement ends)

D1

An entity creates contractual or other rights in you

when the contract is entered into or the right created

D2

An entity grants an option to you

when the option is granted

D3

An entity grants you a right to receive *ordinary income from mining

when the contract is entered into or, if none, when the right is granted

E1

An entity creates a trust over a *CGT asset and you are the trustee

when the trust is created

E2

An entity transfers a *CGT asset to a trust and you are the trustee

when the asset is transferred

E3

A trust over a *CGT asset is converted to a unit trust and you are the trustee

when the trust is converted

E5

You as beneficiary under a trust become absolutely entitled to a *CGT asset of the trust as against the trustee (disregarding any legal disability)

when you become absolutely entitled

E6

Trustee *disposes of a *CGT asset of the trust to you to satisfy a right you had to receive *ordinary income from the trust

when the *disposal occurs

E7

Trustee *disposes of a *CGT asset of the trust to you to satisfy your interest, or part of it, in trust capital

when the *disposal occurs

E8

Beneficiary under a trust *disposes of its interest, or part of it, in trust capital to you

when disposal contract is entered into or, if none, when beneficiary stops being interest’s owner

E9

An entity creates a trust over future property and you are the trustee

when the entity makes the agreement to create the trust

F1

A lessor grants a lease to you, or renews or extends a lease

for grant of lease—when the contract is entered into or, if none, at the start of lease;
for lease renewal or extension—at the start of renewal or extension

F2

A lessor grants a lease to you, or renews or extends a lease, and term is at least 50 years

for grant of lease—when lessor grants the lease;
for lease renewal or extension—at the start of renewal or extension

K1

An entity *partially realises an item of *intellectual property to you

when the contract is entered into or, if none, when the *partial realisation happens

K3

An individual dies and a *CGT asset of the individual *passes to you (as a tax advantaged entity)

when the individual dies

K6

A *CGT event happens to *shares or an interest in a trust you own

when the other CGT event happens

Acquisition rules (no CGT event)

Item

In these circumstances

You acquire the asset at this time:

1

You (or your agent) construct or create a *CGT asset, and you own it when the construction is finished or the asset is created

when the construction, or work that resulted in the creation, started

2

A company issues or allots *shares to you

when contract is entered into or, if none, when *shares issued or allotted

3

A trustee of a unit trust issues units in the trust to you

when contract is entered into or, if none, when units issued

Other acquisition rules

Item

In these circumstances

You acquire the asset at this time:

See:

1

A CGT asset devolves to you as legal personal representative of a deceased individual

when the individual died

section 128-15

2

A CGT asset passes to you as beneficiary in the estate of a deceased individual

when the individual died

sections 128-15 and 128-25

3

A surviving joint tenant acquires deceased joint tenant’s interest in a CGT asset

when the deceased died

section 128-50

4

You get only a partial exemption under Subdivision 118-B for a CGT event happening to a CGT asset that is a dwelling, but you would have got a full exemption if the CGT event had happened just before the first time the dwelling was used for that purpose

at that time

section 118-92

5

The trustee of a deceased estate acquires a dwelling under the deceased’s will for you to occupy, and you obtain an interest in it

when the trustee acquired it

section 118-210

6

You obtain a replacement-asset roll-over for replacing an asset you acquired before 20 September 1985

before 20 September 1985

Divisions 122 and 124

7

You obtain a replacement-asset roll-over for a Crown lease, or a *prospecting or mining entitlement that is renewed or replaced and part of the new entitlement relates a part of the old one that you acquired before 20 September 1985

before 20 September 1985 (for that part of the new entitlement that relates to the pre-CGT part of the old one)

sections 124-595 and 124-725

8

You obtain a same-asset roll-over for a CGT asset the transferor acquired before 20 September 1985

before 20 September 1985

Divisions 122 and 126

9

A company or trustee of a unit trust issues you with bonus equities because it owes you an amount, and the amount is not included in your assessable income

if the original equities are post-CGT assets, or are pre-CGT assets and fully paid—when you acquired the original equities; or
if the original equities are pre-CGT assets and you had to pay an amount for the bonus equities—when the liability to pay arose

section 130-20

10

You own shares in a company or units in a unit trust and you exercise rights to acquire new equities in the company or trust

for the rights
if you acquired them from the company or trustee—when you acquired the original equities; or
for the new equities—when you exercise the rights

section 130-40

11

You acquire shares in a company or units in a unit trust by converting a convertible note

when the liability to pay for the convertible note arose

section 130-60

12

You acquire a qualifying share or right under an employee share scheme and a CGT event does not happen to it at the cessation time or within 30 days after that time

at the cessation time

section 130-80

13

A lessee of land acquires the reversionary interest of the lessor and there is no roll-over for the acquisition

if term of lease was for 99 years or more—when the lease was granted or assigned to the lessee; or
if term of lease less than 99 years—when the reversionary interest acquired

section 132-15

14

You acquired a CGT asset before 20 September 1985, and there has since been a change in the majority underlying interests in the asset

at the time of the change

Division 149