Capital Gains Tax (CGT) is the tax that you pay on any capital gain you include on your annual income tax return. It is not a separate tax, merely a component of your income tax.
You make a capital gain or capital loss if a CGT event happens. Examples of a CGT event are when:
- you sell or give away an asset to someone else
- an asset you own is lost or destroyed
- shares you own are cancelled, surrendered or redeemed
- you stop being an Australian resident
- a company makes a payment (not a dividend to you as a shareholder).
If your home is a place of business, there may be capital gains tax implications when you come to sell your home.