CGT Event
A specific event that triggers a capital gains tax obligation, such as selling, gifting, or losing a CGT asset.
A CGT event is any event that triggers a capital gains tax consequence under Australian tax law. The most common CGT event is disposing of an asset — selling shares, property, cryptocurrency, or other investments. However, CGT events extend beyond sales to include gifts, lost or destroyed assets, creating a trust over an asset, a company cancelling shares, and ceasing to be an Australian resident.
There are over 50 different CGT events categorised from A to K in the tax legislation. The most common are: A1 (disposal of a CGT asset), C1 (loss or destruction of a CGT asset), C2 (cancellation, surrender, or similar ending of a CGT asset), D1 (creating contractual or other rights), E1–E9 (trust-related events), G1 (capital payment for shares), H2 (receipt of an asset outside a trust), and I1 (ceasing to be an Australian resident).
The timing of a CGT event determines which financial year the gain or loss falls into. For property, the CGT event typically occurs at contract date (not settlement date). For shares sold on a stock exchange, it's the trade date. Getting the timing right is important for managing your tax position — for example, delaying a sale by a few days to push it into the next financial year, or holding for at least 12 months to qualify for the CGT discount.