LODGEYGLOSSARY
Process

Settlement Date

The day ownership legally transfers and you pay the balance — triggers CGT and withholding events.

Definition

The settlement date is the date on which a property transaction is legally completed: the buyer pays the balance of the purchase price, the vendor transfers title, and ownership officially changes hands. For CGT purposes, the disposal event occurs at settlement (not exchange of contracts). FRCGW withholding is also triggered at settlement. Settlement typically occurs 30–90 days after contracts are exchanged.

WHY IT MATTERS

The settlement date determines the financial year in which a capital gain or loss is recognised. Strategic timing of settlement around 30 June can shift a CGT liability into the next financial year, potentially at a lower marginal rate or allowing more time for tax planning.

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