A Pre CGT asset losses its tax free status generally when the ownership of the asset alters.

Division 149 of Income Tax Assessment Act 1997 contains the rules which govern when an asset acquired before 20 September 1985 (``pre-CGT asset'') is treated as having been acquired after that date.

Essentially a pre-CGT asset ceases being one when the ``majority underlying interests'' in the asset change.  That is the ownership that existed immediately before 20 September 1985 changes.

Typically, when an asset  stops being a pre-CGT asset, the first element of its cost base and reduced cost base is its market value at the time when it became a post-CGT asset.

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