Who can claim
This deduction is available to individuals and companies.
- The CGT event involves an inherited asset, pre-20 September 1985 asset, personal-use asset, collectable, foreign-residency period or non-arm's-length transfer.
What you cannot claim
- Personal-use asset losses are disregarded, and gains are disregarded where the asset cost $10,000 or less.
- Collectable gains and losses are disregarded where the collectable cost $500 or less; other collectable losses are quarantined to collectable gains.
- Pre-CGT status does not remove every possible consequence, including CGT event K6 and major-improvement rules.
How the amount is worked out
Apply the specific asset and taxpayer rule before the ordinary CGT method. A non-arm's-length transfer can require market-value substitution. Inherited and pre-CGT assets can use deemed acquisition dates or values, and foreign-residency periods can change the taxable asset scope and discount.
Records the ATO expects
- Acquisition date and cost
- Probate and deceased-estate records
- Market valuation
- Residency history
- Relationship and transfer evidence
Where this rule comes from
Primary source: Income Tax Assessment Act 1997 Parts 3-1 and 3-3 (Compilation 266 in force 1 July 2026). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO Guide to capital gains tax 2026 (Guide to capital gains tax 2026)