AI Prompt Library

Capital Gains Tax (Australia) prompts for Australian lawyers

These prompts cover the main residence exemption, small business CGT concessions, the 50% discount, CGT rollovers, and foreign resident withholding. Copy any prompt, replace placeholders with your matter facts, and run it.

In short

A curated library of 25 AI prompts for lawyers advising on capital gains tax under the Income Tax Assessment Act 1997 (Cth). Each prompt is grounded in Division 100–152 ITAA 1997 and ATO rulings. Use them with Quillio for CGT calculations, exemptions, and small business concessions.

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Research

Research prompts (5)

Research the main residence exemption

Prompt

Research the main residence exemption under Subdivision 118-B ITAA 1997. Cover the ownership and dwelling requirements, the absence rule under section 118-145, and partial exemption for income-producing use.

Example use: Advising a client who rented out their Sydney home for 3 years before selling.

Research small business CGT concessions

Prompt

Research the four small business CGT concessions under Division 152 ITAA 1997. Cover the basic conditions (maximum net asset value test and active asset test), the 15-year exemption, 50% reduction, retirement exemption, and rollover.

Example use: A sole trader selling a business with $4 million in net assets.

Research the 50% CGT discount

Prompt

Research the 50% CGT discount under Division 115 ITAA 1997. Cover eligible entities, the 12-month holding period, interaction with capital losses, and the order of applying concessions.

Example use: An individual selling shares held for 18 months with a $200,000 capital gain.

Research CGT rollovers for restructures

Prompt

Research the CGT rollover provisions available for business restructures under Subdivisions 122-A, 122-B, and 124-N ITAA 1997. Cover eligibility, conditions, and the consequences of a failed rollover.

Example use: A partnership incorporating as a company and transferring all business assets.

Research foreign resident CGT withholding

Prompt

Research the foreign resident capital gains withholding regime under Subdivision 14-D of Schedule 1 to the TAA 1953. Cover the 12.5% withholding rate, clearance certificates, and variation applications.

Example use: An Australian resident vendor selling a $900,000 property who needs a clearance certificate.

Drafting

Drafting prompts (5)

Draft a CGT main residence declaration

Prompt

Draft a statutory declaration supporting a main residence exemption claim under Subdivision 118-B ITAA 1997. Declarant: [details]. Property: [details]. Occupancy history: [details].

Example use: A vendor claiming the full main residence exemption on a property occupied for 8 years.

Draft a clearance certificate application

Prompt

Draft a foreign resident CGT withholding clearance certificate application to the ATO. Vendor: [details]. Property: [details]. Include residency evidence and expected settlement date.

Example use: An Australian citizen selling a $1.5 million Brisbane property to a foreign buyer.

Draft a small business retirement exemption election

Prompt

Draft the election and record-keeping documents for a small business retirement exemption under section 152-305 ITAA 1997. Taxpayer: [details]. CGT asset: [details]. Superannuation fund: [details].

Example use: A 58-year-old business owner selling goodwill and directing proceeds to their SMSF.

Draft a CGT rollover choice notice

Prompt

Draft a written notice of choice to apply a CGT rollover under [relevant subdivision] ITAA 1997. Transferor: [details]. Transferee: [details]. Asset: [details].

Example use: A sole trader incorporating their business and choosing the Subdivision 122-A rollover.

Draft a CGT withholding variation application

Prompt

Draft a variation application to the ATO to reduce the foreign resident CGT withholding amount. Vendor: [details]. Expected gain: [details]. Grounds: [details].

Example use: A vendor selling at a loss who would otherwise have 12.5% withheld from the proceeds.

Review

Review prompts (5)

Review a CGT calculation

Prompt

Review this CGT calculation for accuracy. Verify the cost base elements (acquisition, incidental, ownership costs), the CGT event date, the discount and concession order, and the net capital gain.

Example use: A client's accountant calculated a $350,000 net capital gain on a rental property sale.

Review a main residence exemption claim

Prompt

Review this main residence exemption claim under Subdivision 118-B ITAA 1997. Verify occupancy periods, the absence concession, income-producing apportionment, and adjacent land treatment.

Example use: A claim involving a property used as a rental for 2 of the 10 years of ownership.

Review small business concession eligibility

Prompt

Review this client's eligibility for the small business CGT concessions under Division 152 ITAA 1997. Verify the maximum net asset value test, the active asset test, and the significant individual test.

Example use: A company with $5.8 million in net assets selling an active business asset.

Review a CGT rollover application

Prompt

Review this CGT rollover election for compliance with [relevant subdivision] ITAA 1997. Check that the conditions are met, the replacement asset is eligible, and the cost base is correctly transferred.

Example use: A Subdivision 124-N scrip-for-scrip rollover on a company acquisition.

Review a CGT event classification

Prompt

Review the CGT event classification for this transaction. Identify the correct CGT event under Part 3-1 ITAA 1997, the timing of the event, and any special rules that apply.

Example use: A complex transaction involving the grant and subsequent cancellation of an option over land.

Client comms

Client comms prompts (5)

Explain CGT on property sale

Prompt

Draft a plain-English letter explaining CGT on the sale of a residential property to a client. Cover the cost base, the 50% discount, the main residence exemption, and estimated tax payable.

Example use: For a client selling an investment property held for 7 years.

Explain small business CGT concessions

Prompt

Draft a plain-English briefing explaining the four small business CGT concessions to a business owner planning to sell. Cover eligibility, the order of concessions, and the retirement exemption cap.

Example use: For a 55-year-old client selling a business they have owned for 20 years.

Explain CGT withholding to a vendor

Prompt

Draft a plain-English letter to a vendor explaining the foreign resident CGT withholding regime. Cover the clearance certificate process, timing, and what happens if the certificate is not obtained before settlement.

Example use: For an Australian resident vendor selling a $2 million property.

Explain CGT on share sales

Prompt

Draft a plain-English letter explaining CGT on the sale of listed shares. Cover the cost base, the 50% discount, the treatment of brokerage, and the interaction with dividend imputation.

Example use: For a client selling a long-held share portfolio worth $500,000.

Explain CGT rollover on business restructure

Prompt

Draft a plain-English letter explaining the CGT rollover available on a business restructure. Cover how the rollover defers the gain, the conditions, and the consequences if conditions are later broken.

Example use: For a partnership converting to a company structure.

Strategy

Strategy prompts (5)

Strategy for timing a CGT event

Prompt

Develop a strategy for timing a CGT event to minimise tax. Client: [details]. Asset: [details]. Consider the 12-month discount, income year timing, capital loss offsets, and small business concession interaction.

Example use: A client with existing capital losses considering selling an investment property in June vs July.

Strategy for maximising main residence exemption

Prompt

Develop a strategy for maximising the main residence exemption where a client has owned multiple properties. Client: [details]. Properties: [details]. Consider the choice of main residence, the absence rule, and the overlap rules.

Example use: A client who moved between two homes and rented out each at different times.

Strategy for stacking small business concessions

Prompt

Develop a strategy for stacking multiple small business CGT concessions to minimise the net capital gain on a business sale. Facts: [details]. Apply the concessions in the optimal order.

Example use: A 62-year-old sole trader selling a business with a $1.2 million capital gain.

Strategy for pre-sale CGT planning

Prompt

Develop a pre-sale CGT planning strategy for a significant asset disposal. Client: [details]. Asset: [details]. Consider cost base maximisation, timing, entity structuring, and concession eligibility.

Example use: A family preparing to sell a commercial property held in a discretionary trust.

Strategy for CGT on relationship breakdown

Prompt

Develop a strategy for managing CGT consequences on the transfer of assets under a family law property settlement. Facts: [details]. Cover the CGT rollover under Subdivision 126-A and the impact on future disposals.

Example use: A divorcing couple splitting a property portfolio and share holdings.

Use with Quillio

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Quillio is built for Australian tax practice — every research output cites the ITAA 1997, ATO rulings, and tribunal decisions. See /practice-areas/tax-lawyers for details, or start a free trial at /free-trial to use these prompts on your own matters.

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