Introduction to Capital Gains Tax

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"Introduction to Capital Gains Tax" - A Tax Office Guide

Are you?	- A Taxpayer?
At a glance:	- The Tax Office has recently published a guide to assist taxpayers in working out which assets are subject to Capital Gains Tax (CGT) and how to calculate any capital gains.
You should:	- Be aware of the operation of the CGT provisions. - Contact us if you require any clarification or advice.

1.	Capital Gains Tax is the tax you pay on any gains made on the sale of your assets. It is not a separate tax, just part of your income tax return.
2.	Capital gains are most commonly derived on the sale of assets such as shares and property.
3.	The sale of most assets will be subject to CGT provisions. However, for individuals, some gains are specifically excluded or exempted from CGT, including: • Main residence [click here for more information]; • Any car, motorcycle or similar vehicle; and • Assets for personal use acquired for $10,000 or less.
4.	In addition, all assets acquired before capital gains tax came in i.e. on September 20, 1985 are excluded from the CGT provisions.
5.	The Tax Office has issued a guide to help taxpayers understand how to calculate any capital gains they may have derived and gives information in relation to: • The various CGT events; • Calculating the capital gain; • Various CGT exemptions, rollovers and concessions; and • Record keeping requirements for CGT purposes.
6.	Click here for a copy of the Tax Office guide to CGT, or visit the ATO website at http://www.ato.gov.au.