Calculate whether you have made a capital gain or capital loss for each CGT event that has happened during the income year. The Capital gain or capital loss worksheet (PDF, 79KB) can help you work this out. Do not include capital gains that are disregarded, deferred or reduced, or capital losses that are disregarded; see Exemptions and rollovers. Include the relevant capital gains at this step if you are a small business owner and qualify for one or more of the following small business CGT concessions: the 50% active asset reduction, small business rollover relief or the small business retirement exemption. You apply the concessions to the amount of any relevant capital gains remaining after step 7.
In calculating your capital gain, you will use one of the following three methods for each asset:
- indexation method
- discount method
- 'other' method.
See How to work out your capital gain or capital loss in part A for a full explanation of these methods and how to use them to calculate your capital gain or capital loss for each CGT event.
For a CGT event that happens after 11.45am (by legal time in the ACT) on 21 September 1999 to a CGT asset that you acquired at or before that time, you can choose to use either the indexation or the discount method to calculate your capital gain if you have owned the asset for at least 12 months. If you bought and sold your asset within 12 months, you must use the 'other' method to calculate your capital gain.
If you use the discount method, do not apply the discount percentage until you have applied current year capital losses and unapplied net capital losses from earlier years.
You also need to work out the amount of any capital gains that you are taken to have made as part of a distribution from a trust. You must use the same method the trustee used in calculating the amount of the capital gain. For more information, see Trust distributions in part A.
Concessions that may apply
There are special rules if a trust’s net capital gain was reduced by the CGT discount or by applying the small business 50% active asset reduction, or both. The trust should advise you if it has claimed either (or both) of these concessions as you will need to adjust the amount of the net capital gain to be included in your total capital gains (see Trust distributions for more information).
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