- When you stop being an Australian resident for tax purposes, CGT event I1 treats you as having disposed of most of your assets at market value at that time. Australian real property and assets of an Australian permanent establishment are excluded.
- Shares in an Australian private company or units in a unit trust are often caught; assets used in a business carried on through a permanent establishment in Australia generally are not.
- An individual can choose to disregard all the gains and losses from CGT event I1; the assets are then treated as taxable Australian property until they are sold or you become a resident again.
- Either way, the market value on the day you stop being a resident is useful: to work out the gain now, or as a record if you make the choice.
- Your accountant or tax adviser decides your residency date and whether to make the choice; we value the assets at that date.
The rule in plain words
When you stop being an Australian resident for tax purposes, CGT event I1 happens. You are treated as having disposed of each CGT asset you owned just before that time for its market value, with some exclusions set out below.
Nothing changes hands. But a capital gain or loss is worked out as if you had sold. A gain is made if the market value at that time is more than the asset's cost base.
The reason is simple. Once you are a foreign resident, Australia generally taxes your capital gains only on taxable Australian property. The rule settles the growth on other assets while you were a resident.
Which business assets are usually caught
Australian real property and assets used in a business carried on through a permanent establishment in Australia are generally not treated as sold when you leave, because Australia can still tax them. Indirect interests in Australian real property are treated differently: see the special case below. Some people are excused altogether, such as certain short-term residents and temporary residents. Your adviser checks this.
For business owners, that often means:
- Usually caught: shares in an Australian private company and units in a unit trust, where the company or trust is not mainly a holder of Australian land
- Usually not caught: goodwill and other assets of a business you keep running in Australia through a permanent establishment
- Special case: a holding in a company or trust whose value comes mainly from Australian land. The ATO says you are treated as immediately reacquiring these at market value.
Exactly which assets are covered is a tax question. Your accountant or tax adviser works through your list.
A gain or loss on an asset you acquired before 20 September 1985 is disregarded under this rule. See pre-CGT assets.
The choice to disregard
An individual can choose to disregard all capital gains and losses from CGT event I1. The choice covers every asset caught by the event, not just some of them.
If you make it, each of those assets is treated as taxable Australian property until the earlier of:
- a CGT event that ends your ownership, such as a sale
- you becoming an Australian resident again
The effect is that the whole change in value, including growth after you leave, is taken into account when the asset is eventually sold. The ATO says you do not need to tell it separately: the way you prepare your tax return is generally sufficient evidence of your choice.
Whether to make the choice depends on your circumstances, including where you are moving and how that country taxes the same gain. That is advice for your accountant or tax adviser. We do not advise on it.
Where the valuation fits
- If you do not make the choice, the market value at the departure date is used to work out the gain in that year's return.
- If you make the choice, a value at the departure date is not used in that return, but some people keep one as a record of where things stood.
Either way it is a value at one date, often already in the past by the time the return is prepared. Our page on retrospective valuations explains how information after the date is treated.
For shares in a private company, the value of your parcel may differ from a simple share of the company's value, because of control, share classes and rights. See private company shares.
What the valuation report covers for this purpose
The report identifies each asset or interest valued, the owner and the valuation date (the day you stopped being a resident, as confirmed by your adviser). It sets out the standard of value (market value), the evidence relied on, the method, earnings and adjustments, any discount or premium for the size of the holding, assumptions and limitations. It is signed by the valuer responsible. We follow the APES 225 guidelines on valuation services.
What we need from you
- your departure date for tax purposes, confirmed by your accountant or tax adviser
- the list of shares, units or interests to be valued
- financial statements of each company or trust for the years around that date
- the share or unit register, constitution or trust deed, and any shareholders' agreement
- management accounts close to the date, if available
Get a fixed fee
The fee is fixed by the annual revenue of the business, starting at $1,495 + GST for revenue under $1 million. If you hold interests in more than one business, ask us for a fixed quote covering all of them.
General information only, current at 10 November 2026. We value businesses and business interests; we do not give tax advice. Your accountant or tax adviser decides whether a rule applies to you.