Hi Team,
Just wondering how should this CGT event to be looked at.
Original contract sold an investment property $1.14m to a group of developer which the purchasers included 4 entities on 5/11/2024,
10% deposit to be paid on 31/01/2025
10% deposit to be paid on 28/02/2025
and balance on completed by 30/06/2025.
They paid first 10% deposit and didn't pay the rest or completed the transaction.
And after a period of negotiation on 26/09/2025:
A deed of variation was executed, 3 entities to be released as purchasers.
$10k penalty interest has been paid before 26/09/2025
$22k penalty interest has been paid on the deed is issued on 26/09/2025
A new contract of sale has been issued and exchanged with similar contract price $1.14m but only one entity remained as purchaser and exchanged on 26/09/2025 and it to be completed on 26/09/2025. The 10% deposit paid on the original contract was carried over to the new contract. And only remaining 90% balance to be paid.
At the end, the settlement was completed on 17/10/2025 with the balance of 90% and additional penalty interest $5k paid.
Question:
Should it be treated as one CGT event, and it was happened on 05/11/2024 with contract price $1.14m.
And the interest received as interest income as the corresponding year the interest was received.
Many Thanks.
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