22 (Capital Gains Tax)[1]

Element of the cost base by the indexation factor

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element of the cost base by the “indexation factor” Capital proceeds (general Capital proceeds (general     rule) rule) Sum of money and/or market value of property that a taxpayer has received, or is  entitled to receive, as a result of a CGT event Does not include any GST charged where the CGT event is also a “taxable supply” Capital proceeds Capital proceeds     (modifications) (modifications) General rule for calculating capital proceeds is modified by: Market value substitution rule Apportionment rule Non-receipt rule Repayment rule Assumption of liability rule
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Discount capital gains Discount capital gains Discount capital gains reduced by discount percentage: Individuals and trusts = 50% Complying superannuation entities = 33 % No discount for companies Discount capital gains Discount capital gains     (cont) (cont) Requirements: Capital gain must be made by individual, complying superannuation entity or  trust Capital gain must result from CGT event happening after 21 September 1999 Capital gain must have been calculated without taking into account indexation Capital gain must result from CGT event happening to a CGT asset acquired at  least 12 months before the event (CGT event must not be a CGT event listed in  s 115-25(3)) Small business Small business     concessions concessions Qualifying conditions: CGT event condition Entity condition Active asset condition
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CGT concession stakeholder condition Concessions: 15 year exemption 50% reduction concession Retirement concession Small business roll-over concession Specific CGT events Specific CGT events Disposals (Subdiv 104-A) Use and enjoyment before title passes (Subdiv 104-B) End of a CGT asset (Subdiv 104-C) Bringing into existence of a CGT asset (Subdiv 104-D) Trusts (Subdiv 104-E) Leases (Subdiv 104-F) Shares (Subdiv 104-G) Special capital receipts (Subdiv 104-H) Australian residency ends (Subdiv 104-I) CGT events relating to roll-overs (Subdiv 104-J) Other CGT events (Subdiv 104-K) Consolidated groups and MEC groups (Subdiv 104-L) CGT event B1 CGT event B1 Arises if use and enjoyment of a CGT asset passes to another entity and title may  pass at or before the agreement’s end Time of CGT event is when the other entity first obtains the use and enjoyment of 
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the asset  Capital gain if capital proceeds from the agreement are more than the asset’s cost  base  Capital loss if capital proceeds are less than the asset’s reduced cost base  Disregard capital gain/loss if pre-CGT asset CGT event C1 CGT event C1 Arises if whole or part of a CGT asset is lost or destroyed
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