Capital Gains Tax (cgt)

Written by Claude Haiku 4.5 from the extracted text on 10 Jul 2026. It can miss or misread redacted and scanned pages. Check the source before relying on it.

Treasury received stakeholder feedback on proposed capital gains tax (CGT) look-through treatment for earnout arrangements during targeted consultation. Stakeholders sought broader application than announced, extended protection for taxpayers who acted on prior announcements, and expansion to depreciating assets like mining tenements and intellectual property. Treasury rejected widening the measure beyond business asset disposals, citing substantial cost implications. Key disputes included whether contingency requirements were too narrow (Treasury maintained the measure should link only to future economic performance as originally announced), the four-year payment timeframe (stakeholders sought five or more years; Treasury defended four years as aligning with standard amendment periods and noted transitional protections), and whether the measure should extend beyond CGT event A1 disposals and active assets. Treasury confirmed the measure would apply from exposure draft release, with retrospective protections for good-faith self-assessments.