What do we mean by 'acquisition and disposal of units'?
Under the Capital Gains Tax ('CGT') provisions, when a unitholder disposes of their units, whether by withdrawal, switching or transferring units, they may be liable to pay tax on any gain. Certain unitholders may be liable to pay tax on any such gains as ordinary income.
Any capital loss arising on a disposal of units may be able to be offset against capital gains derived by a unitholder in that year or subsequent years. Individuals, trusts and complying superannuation entities may obtain partial CGT exemptions in relation to the disposal of units, where the units have been held for more than 12 months.