If you’ve identified you had a CGT event because you sold or disposed of a CGT asset or some other CGT event happened, you then need to identify the time the CGT event occurred.

Knowing the time is important because it determines in which income year you need to report your capital gain or capital loss from the event.

If you dispose of a CGT asset to someone else (for example, you sell it to someone), the CGT event happens when you enter into the contract for disposal. If there is no contract, the CGT event generally happens when you stop owning the asset.

For example, you enter into a contract to sell commercial premises in June 2024 (the 2023–24 income year). The contract settles in October 2024 which is the following income year, 2024–25. When reporting the CGT event, your capital gain or loss was made in the 2023–24 income year when you entered into the contract, not in 2024–25 when the contract was settled.

When the CGT event doesn’t involve a CGT asset, the time of the event depends on what CGT event occurs. For example, if you created a contractual right, the CGT event happens when the contract is entered into or the right is created. 

The ATO website provides a full list of CGT events and their timing.