ATO announces changes to capital gains tax

5 March 2004

GST-registered taxpayers who have had an assessable capital gain or loss may be able to claim income tax refunds following the release of Draft Tax Determination TD 2004/D3 on 25 February 2004.

This determination explains the Tax Office’s view before amendments to capital gains tax law, expected to take effect from 20 February 2004.

The amended legislation will require people to exclude GST input tax credits when calculating capital gains or losses.

Taxpayers registered for GST may now be able to claim tax refunds if they followed previous Tax Office advice when calculating capital gains or losses on assets sold between 1 July 2000 and 19 February 2004, as provided in the Australian Taxation Office’s Guide to Capital Gains Tax booklet for the 2001, 2002 and 2003 years.

The Tax Office will be explaining changes to taxpayers and tax agents through electronic tax agent broadcasts, large business bulletins and other information on its website. Guide material and literature will also be updated to reflect the law change.

For more information phone the Tax Office on 13 28 66 or see the Australian Taxation Office (ATO) website: www.ato.gov.au