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5.5.4. Capital Gains

Capital gains are deemed to be sourced in Australia if it is related to the sale or disposal of a capital asset that is a 'taxable Australian property'. The taxable Australian property includes:

  • a direct interest in real property situated in Australia;
  • a mining, quarrying or prospecting right to minerals, petroleum or quarry materials situated in Australia;
  • a capital gains tax assets that have been used at any time in carrying on a business through a permanent establishment in Australia;
  • an indirect interest in Australian real property i.e. the non-resident along with the associates hold 10% or more of an entity, including a foreign entity, and the value of the interest is principally attributable to Australian real property; and
  • an option or right on any of the above.