Discuss the CGT consequences of these events for Nathan and Chemical Pty Ltd (4 marks). Include in your discussion the availability of the 50% discount.

Nathan had a car that he acquired for $45,000 5 years ago. It was stolen in the current tax year, and insurance as a result gave Nathan $65,000 in compensation.

Nathan, whose job was an industrial chemist, also entered into a restraint of trade with his ex-employer, Chemical Pty Ltd, to not work with any of their competitors for 3 years. Nathan was paid $300,000 for this (assume this did not constitute ordinary income and was also not assessable under s. 15-2). When the agreement lapsed it was not renewed.

Please answer using law code and explanation to prove your answer. 

Answer rating: 100% (QA)

CGT consequences for Nathan Car theft Disposal event The theft of the car is considered a disposal event for CGT purposes under section 104101 of the ... View the full answer