Capital Gains Tax
CGT applies to most asset disposals — shares, crypto, property, businesses. The 50% discount, the main residence exemption, and the small business CGT concessions (built on the test and ) are the three levers that move the bill the most. Every disposal is a separate with its own timing.
Case law that bends the bill
Greig v FCT [2020] FCAFC 25 — shares acquired with a dominant intention of short-term profit-making can be on revenue account, with losses deductible under s 8-1 ITAA 1997. The investor-vs-trader line is decided on facts, not on what you call yourself in your tax return.
Eichmann v FCT [2020] FCAFC 155 — land used to store business tools and equipment can satisfy the active asset test in s 152-40(1)(a) ITAA 1997 even without direct functional integration with day-to-day operations. Widens access to the small business CGT concessions.