Appendixes

Step 4 How to complete the CGT schedule

Your entity must complete a CGT schedule for the 2015–16 income year if:

• the total current year capital gains are greater than $10,000, or
• the total current year capital losses are greater than $10,000.

If your entity is required to complete a CGT schedule, attach it to your entity’s 2016 tax return. You should lodge only one CGT schedule with your entity’s tax return.

If you are lodging a paper tax return and CGT schedule, print and complete the CGT schedule provided. To get copies of the schedule, phone our Publications Distribution Service on 1300 720 092.

Print your entity’s tax file number (TFN), name and Australian business number in the boxes provided. The CGT schedule must be signed in the same way that the 2016 tax return is signed.

If you are a multi-class AMIT you will be required to lodge your tax return and CGT schedule electronically. If you are a multi-class AMIT show the name of the AMIT class that the schedule relates to on the CGT schedule for each class. The name should be identical to the AMIT class name used in the related AMIT tax schedule.

Consolidated groups

If a group consolidates during the income year, the head company must lodge a CGT schedule if the total capital gains or total capital losses that it makes (as head company of the consolidated group and while not a member of a consolidated group) are greater than $10,000.

An entity that has joined a consolidated group or groups during the income year as a subsidiary member must lodge a CGT schedule covering any periods of non-membership if the entity satisfies the requirements for lodgment of that schedule.

Attribution Managed Investment Trusts (AMIT)

If an AMIT chooses multi-class treatment, complete a separate CGT schedule for each class with a total capital gain or loss greater than $10,000.

AMITs that do not choose multi-class treatment must lodge a CGT schedule if the entity has a total capital gain or loss greater the $10,000.

Item 1 Current year capital gains and capital losses

Transcribe the amounts at 1A to 1I for capital gains and from 1K to 1R for capital losses in table 1 on your CGT summary worksheet to the corresponding labels at item 1 of the CGT schedule. For example, transcribe the figure at 1A in table 1 of the CGT summary worksheet to A Shares in companies listed on an Australian securities exchange item 1 of the CGT schedule.

For an AMIT that chooses multi-class treatment, include any:

• capital gains as a result of transfers of assets between classes of the AMIT at 1I
• any capital losses as a result of transfers of assets between classes at 1R.

Sum labels A to I at item 1 of the CGT schedule and write the total at J Total current year capital gains.

Item 2 Capital losses

Sum labels K to R item 1 and write the total at A Total current year capital losses item 2.

From your CGT summary worksheet, transcribe the amounts at 2B in table 2, 2C in table 3 and 2D in table 4 to the corresponding labels at item 2 of the CGT schedule.

Sum labels B, C and D at item 2 and write the total at E Total capital losses applied.

Item 3 Unapplied net capital losses carried forward

Transcribe the amounts at 3A in table 9 and 3B in table 5 from your CGT summary worksheet to the corresponding labels at item 3 of the CGT schedule.

Item 4 CGT discount

Transcribe the amount at 4A in table 6 from your CGT summary worksheet to A item 4 of the CGT schedule.

Item 5 CGT concessions for small business

Transcribe the amounts 5A, 5B and 5C in table 7 from your CGT summary worksheet to the corresponding labels at item 5 of the CGT schedule.

Sum labels A, B and C at item 5 and write the total at D Total small business concessions applied.

Item 6 Net capital gain

Follow the instructions on the schedule to calculate A Net capital gain at item 6 of the CGT schedule.

Item 7 Earnout arrangements

Are you a party to an earnout arrangement?

Print X in the appropriate box at A.

If you are a party to more than one earnout arrangement you will need to provide details of all earnout arrangements in which you are a party. To do this, attach a separate sheet to the CGT schedule providing the details listed in this item for each additional earnout arrangement.

If you are a buyer, complete B and C.

If you are a seller, complete:

• B and C
• D and E for arrangements which do not involve look-through earnout rights.

Also, if you’re a seller, complete F and G if:

• you received or provided a financial benefit under a look-through earnout right created in an earlier income year; and
• you wish to seek an amendment to that earlier income year via this schedule; and
• you satisfy all the following conditions:
  • the look-through earnout right was created on or after 24 April 2015
  • you are an individual or a company (not in a trustee capacity)
  • you are lodging your current year income tax return before its lodgment due date, and
  • none of the following apply to you:
    • you have a substituted accounting period
    • you are the head company of a consolidated group
    • you are no longer eligible to CGT concessions for the earlier income year to which you are seeking the amendment
    • you are a company seeking to utilise tax losses as a result of this amendment
    • you need to request an amendment to more than one income year as a result of receiving or providing financial benefits
    • you need to amend amounts other than your net capital gains or capital losses carried forward in the earlier income year for which you are seeking the amendment.
     
   

If you received or provided a financial benefit under a look-through earnout right created in an earlier income year, you may need to seek an amendment to your net capital gain (or capital losses carried forward amount) of that earlier income year. You can request such amendment via this schedule by completing labels 7F and 7G if you satisfy all the conditions above.

Completing the labels

Write at B the number of years the earnout arrangement runs for in total.

Write at C the year of the earnout arrangement you are in.

For example, if you are in the second year of a four year earnout arrangement, you would write '4' at B and '2' at C.

Write at D the total estimated capital proceeds from the earnout arrangement.

Write at E the amount of any capital gain or loss you made under your earnout arrangement in the income year for which this schedule is being completed. If this amount is a loss, print 'L' in the box at the right of the amount at E.

For F and G, if you meet all the conditions above:

• write at F the income year in which the look-through earnout right or rights were created
• write at G the amended net capital gain or capital losses carried forward amount resulting from the financial benefits received or provided.

If you are amending your capital losses carried forward amount, you must print L in the box at the right of the amount at G.

If your CGT position changes from a net capital gain to a capital loss as a result of receiving or providing a financial benefit under a look-through earnout right and you are required to temporarily disregard that capital loss as explained below, write '0' at G.

Capital losses arising from the disposal of assets to which look-through earnout rights relate are temporarily disregarded if the capital losses could be reduced by you receiving future financial benefits. You can recognise such capital losses only until such time as the losses become certain.

For example, if you are a seller in a standard or combination look-through earnout arrangement and you are in a capital loss position resulting from the disposal of the underlying asset to which the look-through earnout right relates and not in the last year of the arrangement, you must temporarily disregard the capital loss as it could potentially be reduced by you receiving future financial benefits. However, if you are in a reverse earnout arrangement then a capital loss can be recognised as the capital loss can only be increased through your provision of financial benefits to the buyer.

If your circumstances do not satisfy the conditions above

If your circumstances do not satisfy the conditions above and you are applying the look-through CGT treatment, you will need to lodge an amendment request for the relevant income tax assessment. In your amendment request, you should clearly indicate that the amendment you are seeking is in relation to a look-through earnout right. This allows us to process your amendment correctly and to ensure no penalties or interests will apply if other conditions are met.

Example

Mark is retiring and he sold all of the shares in his business XYZ Co Pty Ltd, to Janet on 24 April 2015.

According to the sale contract, Mark would

• receive an upfront payment of $1 million at the time of sale;
• have a right to future payments of $150,000 in the next five income years provided the turnover of XYZ Co Pty Ltd exceeds an agreed threshold in the prior income year; and
• be obliged to provide $100,000 to Janet if the turnover of previous year falls short of the agreed threshold.

The following assumptions are made for this example:

• Mark has a cost base of XYZ Co Pty Ltd of $1.1 million;
• The business turnover exceeds the agreed threshold for the 2015 income year;
• Mark is only entitled to the 50% CGT discount;
• there are no other CGT events in those relevant income years;
• the right is a look-through earnout right; and
• there are no capital losses brought forward from prior years;

In June 2018, Mark offers to pay Janet $100,000, as well as giving up his right to the potential future benefits, if Janet agrees to forgo her right to further payments under the look-through earnout right. Janet agrees to this offer.

2015 income tax return

At this time, Mark has received an upfront payment of $1 million for the sale of the XYZ Co Pty Ltd shares. Under the treatment provided in TR 2007/D10, Mark would need to exclude from the capital proceeds of this CGT event so much of the payment as is reasonably attributable to the granting of the right to provide financial benefits to Janet. Mark would also need to include in the capital proceeds the value of the right to receive future financial benefits from Janet. However, as this is a look through earnout right, the amount attributable to the granting of the right to provide financial benefits as well as the value of the right to receive financial benefits are disregarded when working out the capital proceeds. Accordingly, for the 2015 income year, Mark has a capital loss of $100,000 (capital proceeds of $1 million less the cost base of $1.1 million) as a result of the sale of XYZ Co Pty Ltd shares. However, as the capital loss could be reduced by Mark receiving future financial benefits, Mark must temporarily disregard the capital loss of $100,000. He cannot recognise the capital loss at the net capital losses carried forward label of his 2015 income tax return.

2016 income tax return

XYZ Co Pty Ltd’s turnover exceeds the agreed threshold in the 2015 income year and therefore Janet pays Mark a further amount of $150,000 in the 2016 income year.

As a result of this payment, Mark's capital proceeds from the sale of XYZ Co Pty Ltd shares are now considered to be $1.15 million – made up of the $1 million initial payment and the $150,000 payment he received in 2016. Mark has now made a capital gain of $50,000 (capital proceeds of $1.15 million less the cost base of $1.1 million).

Accordingly, Mark now needs to amend his 2015 income tax return to include a net capital gain of $25,000 (after applying the 50% CGT discount). Mark meets all the conditions listed above, and therefore has the option of completing F and G to inform the Commissioner of the amended net capital gain or alternatively Mark can write to the Commissioner to seek an amendment. If Mark decides to complete F and G, he would need to write ‘2015’ at F and '25,000' at G. By writing '25,000' at G Mark’s net capital gain for the 2015 income tax return will be amended to $25,000.

2017 income tax return

In the 2017 income year, Mark is required to provide Janet with $100,000 as the turnover for the 2016 income year is less than the agreed threshold. As a result, the total capital proceeds from the sale of all the shares in XYZ Co Pty Ltd changes to $1.05 million, resulting in a capital loss of $50,000. As previous mentioned, Mark cannot recognise this capital loss. Therefore, when Mark seeks an amendment, he should write '0' at G. We will reduce the net capital gain from $25,000 (the net capital gain reported in the prior amendment request) to Nil.

2018 income tax return

Janet accepts Mark's offer and foregoes her right to future financial benefits for $100,000.

The amount of $100,000 paid by Mark is a financial benefit provided to terminate a look-through earnout right and is treated in the same way as a financial benefit provided under the right.

As the turnover in 2017 does not exceed the agreed threshold, Mark also pays Janet $100,000 as per the earnout arrangement.

Consequently, Mark’s total capital proceeds for the sale reduces to $850,000, made up of the $1 million initial payment, the subsequent $150,000 payment received, $200,000 provided to Janet under the earnout right for the business performance not achieving the agreed threshold , as well as the payment of $100,000 to end the earnout right.

Mark’s capital loss from the share sale is now $250,000 (capital proceeds of $850,000 less the cost base of $1.1 million). As no further financial benefits could be received, Mark can recognise this capital loss which resulted from the share disposal to which the look-through earnout right relates. Mark will need to record ‘2015’ at F and '250,000' at G and write L in the box at the right of this amount. By writing $250,000 at G and L in the box at the right of this amount, Mark's 2015 income tax return is amended to reflect net capital losses carried forward of $250,000.

The table below summarises how Mark will complete F and G.

Year	Financial benefits received	Financial benefits provided	Total capital proceeds from the disposal	Net Capital gain	Capital loss	How to complete F and G
2015	$1 million (upfront payment)	N/A	$1 million	N/A	$100,000	N/A
2016	$150,000 (received as agreed threshold is met for 2015 income tax year)	N/A	$1.15 million	$25,000 (after applying the 50% CGT discount)	N/A	F: 2015 G: $25,000
2017	N/A	$100,000	$1.05 million	N/A	$50,000	F: 2015 G: $0
2018	N/A	$200,000 ($100,000 for payment to end earnout rights plus $100,000 for business performance falling to meet the agree threshold)	$850,000	N/A	$250,000	F: 2015 G: $250,000(L)

Item 8 Other CGT information required (if applicable)

Small business 15-year exemption

Write the total amount of any capital gains disregarded by the small business 15-year exemption at A item 8 of the CGT schedule. Do not apply the CGT discount.

Print in the code box at A the code from the list below that best describes the CGT asset or CGT event from which your entity made the capital gain. If your entity made capital gains from more than one CGT asset or CGT event, select the code which best describes the type of CGT asset or CGT event that produced the largest amount of capital gain.

CGT asset or CGT event code:

• S shares
• U units in unit trusts
• R real estate
• G goodwill
• O other CGT assets or CGT events not listed above.

Capital gains disregarded by a foreign resident

If you are a foreign resident, you are subject to CGT if a CGT event happens to a CGT asset that is ‘taxable Australian property’. However, if you are eligible for an exemption then you may disregard the capital gain you have made. If your CGT asset is not a taxable Australian property, you do not need to answer this question.

Write the total amount of any capital gains disregarded by the application of foreign resident exemption at B item 8 of the CGT schedule. Do not apply the CGT discount.

Capital gains disregarded as a result of scrip for scrip rollover

During the income year, did your entity choose a scrip for scrip rollover when an arrangement was made to exchange original interests for replacement interests?

Original interests are shares or units or other interests (or an option, right or similar interest in a company or trust), while replacement interests are similar interests in another company or trust.

Write the total amount of any capital gains disregarded by the application of the scrip for scrip rollover at C item 8 of the CGT schedule.

Capital gains disregarded as a result of inter-company assets rollover

A same asset rollover may be available where a company transfers or creates a CGT asset in another company that is a member of the same wholly-owned group, where at least one of the companies is a foreign resident.

Write the total amount of any capital gains disregarded by the application of the inter-company asset rollover at D item 8 of the CGT schedule.

Capital gains disregarded by a demerging entity

You may be eligible to disregard any capital gains arising from a demerger if you are a demerging entity in a demerger group, see Demerger exemption.

Write the total amount of any capital gains disregarded by the application of the demerger exemption at E item 8 of the CGT schedule. Do not include any amounts disregarded by the application of a Demerger rollover.

After following all these steps, you have completed your entity’s CGT schedule.

Remember to lodge the CGT schedule with your entity’s tax return.

Do not lodge your worksheets. Keep these with your own records.

Capital gains and capital losses from transfers to other classes

This section applies to all Attribution Managed Investment Trusts (AMITs).

You must lodge an AMIT's income tax return, and where applicable its CGT schedule, electronically.

You may make an irrevocable election to treat separate classes of interests in the AMIT as separate AMITs. If you made this election and transferred assets between separate AMIT classes in 2015-16, show the capital gains and losses arising from those asset transfers at.

• Total capital gains from transfers to other classes

Appendix 1 Summary of CGT events

Disposal

CGT event		Time of event	Capital gain	Capital loss
A1	Disposal of a CGT asset	when the disposal contract is entered into or, if none, when the entity stops being the asset’s owner	capital proceeds from disposal less the asset’s cost base	asset’s reduced cost base less capital proceeds

Hire purchase and similar agreements

CGT event		Time of event	Capital gain	Capital loss
B1	Use and enjoyment before title passes	when use of the CGT asset passes	capital proceeds less the asset’s cost base	asset’s reduced cost base less capital proceeds

End of a CGT asset

CGT event		Time of event	Capital gain	Capital loss
C1	Loss or destruction of a CGT asset	when compensation is first received or, if none, when the loss is discovered or destruction occurred	capital proceeds less the asset’s cost base	asset’s reduced cost base less capital proceeds
C2	Cancellation, surrender and similar endings	when the contract ending an asset is entered into or, if none, when an asset ends	capital proceeds from the ending less the asset’s cost base	asset’s reduced cost base less capital proceeds
C3	End of an option to acquire shares and so on	when the option ends	capital proceeds from granting the option less expenditure in granting it	expenditure in granting the option less capital proceeds

Bringing a CGT asset into existence

CGT event		Time of event	Capital gain	Capital loss
D1	Creating contractual or other rights	when the contract is entered into or the right is created	capital proceeds from creating the right less incidental costs of creating the right	incidental costs of creating the right less capital proceeds
D2	Granting an option	when the option is granted	capital proceeds from the grant less expenditure to grant it	expenditure to grant the option less capital proceeds
D3	Granting a right to income from mining	when the contract is entered into or, if none, when the right is granted	capital proceeds from the grant of right less the expenditure to grant it	expenditure to grant the right less capital proceeds
D4	Entering into a conservation covenant	when covenant is entered into	capital proceeds from covenant less cost base apportioned to the covenant	reduce cost base apportioned to the covenant less capital proceeds from covenant

Trusts

CGT event		Time of event	Capital gain	Capital loss
E1	Creating a trust over a CGT asset	when the trust is created	capital proceeds from creating the trust less the asset’s cost base	asset’s reduced cost base less capital proceeds
E2	Transferring a CGT asset to a trust	when the asset is transferred	capital proceeds from the transfer less the asset’s cost base	asset’s reduced cost base less capital proceeds
E3	Converting a trust to a unit trust	when the trust is converted	market value of the asset at that time less its cost base	asset’s reduced cost base less that market value
E4	Capital payment for trust interest	when the trustee makes the payment	non-assessable part of the payment less the cost base of the trust interest	no capital loss
E5	Beneficiary becoming entitled to a trust asset	when the beneficiary becomes absolutely entitled	for a trustee, market value of the CGT asset at that time less its cost base; for a beneficiary, that market value less the cost base of the beneficiary’s capital interest	for a trustee, reduced cost base of the CGT asset at that time less that market value; for a beneficiary, reduced cost base of the beneficiary’s capital interest less that market value
E6	Disposal to a beneficiary to end an income right	the time of the disposal	for a trustee, market value of the CGT asset at that time less its cost base; for a beneficiary, that market value less the cost base of the beneficiary’s right to income	for a trustee, reduced cost base of the CGT asset at that time less that market value; for a beneficiary, reduced cost base of the beneficiary’s right to income less that market value
E7	Disposal to a beneficiary to end capital interest	the time of the disposal	for a trustee, market value of the CGT asset at that time less its cost base; for a beneficiary, that market value less the cost base of the beneficiary’s capital interest	for a trustee, reduced cost base of the CGT asset at that time less that market value; for a beneficiary, reduced cost base of the beneficiary’s capital interest less that market value
E8	Disposal by a beneficiary of capital interest	when the disposal contract is entered into or, if none, when the beneficiary ceases to own the CGT asset	capital proceeds less the appropriate proportion of the trust’s net assets	appropriate proportion of the trust’s net assets less the capital proceeds
E9	Creating a trust over future property	when the entity makes an agreement	market value of the property (as if it existed when the agreement was made) less incidental costs in making the agreement	incidental costs in making the agreement less the market value of the property (as if it existed when the agreement was made)
E10	Annual cost base reduction exceeds cost base of interest in AMIT	when reduction happens	excess of cost base reduction over cost base	no capital loss

Leases

CGT event		Time of event	Capital gain	Capital loss
F1	Granting a lease	for granting a lease, when the entity enters into the lease contract or, if none, at the start of the lease; for a lease renewal or extension, at the start of the renewal or extension	capital proceeds less the expenditure on grant, renewal or extension	expenditure on grant, renewal or extension less capital proceeds
F2	Granting a long-term lease	for granting a lease, when the lessor grants the lease; for a lease renewal or extension, at the start of the renewal or extension	capital proceeds from the grant, renewal or extension less the cost base of the leased property	reduced cost base of the leased property less the capital proceeds from the grant, renewal or extension
F3	Lessor pays lessee to get lease changed	when the lease term is varied or waived	no capital gain	amount of expenditure to get lessee’s agreement
F4	Lessee receives payment for changing a lease	when the lease term is varied or waived	capital proceeds less the cost base of lease	no capital loss
F5	Lessor receives payment for changing a lease	when the lease term is varied or waived	capital proceeds less expenditure for variation or waiver	expenditure for variation or waiver less capital proceeds

Shares

CGT event		Time of event	Capital gain	Capital loss
G1	Capital payment for shares	when the company pays a non-assessable amount	payment less cost base of shares	no capital loss
G3	Liquidator or administrator declares shares or financial instruments worthless	when declaration is made	no capital gain	shares’ or financial instruments’ reduced cost base

Special capital receipts

CGT event		Time of event	Capital gain	Capital loss
H1	Forfeiture of a deposit	when the deposit is forfeited	deposit less expenditure in connection with the prospective sale	expenditure in connection with the prospective sale less deposit
H2	Receipt for an event relating to a CGT asset	when the act, transaction or event occurred	capital proceeds less the incidental costs	incidental costs less capital proceeds

Cessation of residency

CGT event		Time of event	Capital gain	Capital loss
I1	Individual or company stops being an Australian resident	when the individual or company stops being an Australian resident	for each CGT asset the person owns, its market value less its cost base	for each CGT asset the person owns, its reduced cost base less its market value
I2	Trust stops being a resident trust	when the trust ceases to be a resident trust for CGT purposes	for each CGT asset the trustee owns, its market value less its cost base	for each CGT asset the trustee owns, its reduced cost base less its market value

Reversal of rollover

CGT event		Time of event	Capital gain	Capital loss
J1	Company stops being a member of a wholly owned group after a rollover	when the company stops being a member of a wholly owned group after a rollover	market value of the asset at the time of the event less its cost base	reduced cost base of the asset less that market value
J2	Change for replacement asset or improved asset after a rollover under Subdivision 152-E	when the change happens	the amount mentioned in subsection 104-185(5)	no capital loss
J4	Trust failing to cease to exist after rollover under Subdivision 124-N	when the failure to cease to exist happens	for the company, market value of the asset at the time the company acquired it less its cost base at that time for a shareholder, market value of the share at the time the shareholder acquired it less its cost base at that time	for the company, reduced cost base of the asset at the time the company acquired it less its market value at that time for a shareholder, reduced cost base of the share at the time the shareholder acquired it less its market value at that time
J5	Failure to acquire replacement asset and to incur fourth element expenditure after a rollover under Subdivision 152-E	at the end of the replacement asset period	the amount of the capital gain that you disregarded under Subdivision 152-E	no capital loss
J6	Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gain	at the end of the replacement asset period	the amount mentioned in subsection 104-198(3)	no capital loss

Other CGT events

CGT event		Time of event	Capital gain	Capital loss
K2	Bankrupt pays an amount for debt	when payment is made	no capital gain	that part of the payment that relates to the denied part of a net capital loss
K3	Asset passing to a tax-advantaged entity	when an individual dies	market value of the asset at death less its cost base	reduced cost base of the asset less that market value
K4	CGT asset starts being trading stock	when the asset starts being trading stock	market value of asset less its cost base	reduced cost base of asset less that market value
K5	Special capital loss from a collectable that has fallen in market value	when CGT event A1, C2 or E8 happens to shares in the company, or an interest in the trust, that owns the collectable	no capital gain	market value of the shares or interest (as if the collectable had not fallen in market value) less the capital proceeds from CGT event A1, C2 or E8
K6	Pre-CGT shares or trust interest	when another CGT event involving the shares or interest happens	capital proceeds from the shares or trust interest that are attributable to post-CGT assets owned by the company or trust, less the assets’ cost bases	no capital loss
K7	Balancing adjustment occurs for a depreciating asset that you used for purposes other than taxable purposes	when the balancing adjustment event occurs	termination value less cost times fraction	cost less termination value times fraction
K8	Direct value shifts affecting your equity or loan interests in a company or trust	the decrease time for the interests	the capital gain worked out under section 725-365	no capital loss
K9	Entitlement to receive payment of a carried interest	when you become entitled to receive the payment	capital proceeds from the entitlement	no capital loss
K10	You make a forex realisation gain as a result of forex realisation event 2 and item 1 of the table in subsection 775-70(1) applies	when the forex realisation event happens	equal to the forex realisation gain	no capital loss
K11	You make a forex realisation loss as a result of forex realisation event 2 and item 1 of the table in subsection 775-75(1) applies	when the forex realisation event happens	no capital gain	equal to the forex realisation loss
K12	Foreign hybrid loss exposure adjustment	just before the end of the income year	no capital gain	the amount stated in subsection 104-270(3)

Consolidations

CGT event		Time of event	Capital gain	Capital loss
L1	Reduction under section 705-57 in tax cost setting amount of assets of entity becoming subsidiary member of consolidated group or MEC group	just after entity becomes subsidiary member	no capital gain	amount of reduction
L2	Amount remaining after step 3A etc of ‘joining allocable cost amount is negative’	just after entity becomes subsidiary member	amount remaining	no capital loss
L3	Tax cost setting amounts for retained cost base assets exceed joining allocable cost amount	just after entity becomes subsidiary member	amount of excess	no capital loss
L4	No reset cost base assets against which to apply excess of net allocable cost amount on joining	just after entity becomes subsidiary member	no capital gain	amount of excess
L5	Amount remaining after step 4 of ‘leaving allocable cost amount is negative’	when entity ceases to be subsidiary member	amount remaining	no capital loss
L6	Error in calculation of tax cost setting amount for joining entity’s assets	start of the income year when the Commissioner becomes aware of the errors	the net overstated amount resulting from the errors, or a portion of that amount	the net understated amount resulting from the errors, or a portion of that amount
L8	Reduction in tax cost setting amount for reset cost base assets on joining cannot be allocated	just after entity becomes subsidiary member	no capital gain	amount of reduction that cannot be allocated