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Part C – Instructions for companies, trusts and funds (entities)

Information for companies, trusts and funds (known as entities).

Last updated 21 June 2018

Are you an individual?

If you are completing a tax return on behalf of an individual (rather than an entity) and you do not wish to use the worksheets, read part B.

If you need help completing the:

Is your entity a company, trust or fund?

Read this part.

Do you expect your entity’s total capital gains or total capital losses for 2017–18 to be $10,000 or less?

An Attribution Managed Investment Trust (AMIT) with multiple classes must apply the $10,000 total capital gain or loss threshold to each class separately.

Yes

Work through steps 1 to 3.

No

Work through steps 1 to 4. Step 4 will show you how to complete the CGT schedule.

Introduction

The instructions in this part are designed to help companies, trusts and funds (your entity) to calculate a capital gain or capital loss and to complete the capital gains items on the relevant tax return:

  • Company tax return 2018 item 7
  • Trust tax return 2018 item 21
  • Fund income tax return 2018 item 10
  • Self-managed superannuation fund annual return 2018 item 11.

Funds include superannuation funds, approved deposit funds and pooled superannuation trusts.

A self-managed superannuation fund is a fund with fewer than five members that meets the requirements of section 17A of the Superannuation Industry (Supervision) Act 1993.

The labels to complete at these items on your entity’s tax return are:

  • G Did you have a capital gains tax event during the year?
  • M Have you applied an exemption or rollover?
  • A Net capital gain

You will also need to complete V Net capital losses carried forward to later income years at Losses information on your entity’s tax return.

The relevant item number on each tax return is:

  • Company tax return 2018 item 13
  • Trust tax return 2018 item 27
  • Fund income tax return 2018 item 13
  • Self-managed superannuation fund annual return 2018 item 14.

You may need to complete a Consolidated groups losses schedule 2018 or a Losses schedule 2018. See the applicable schedule instructions for full details of who must complete the schedule.

The term ‘entity’ is used to describe a company (including a head company of a consolidated group), a trust and a fund in this part of the guide.

Worksheets

The worksheets provided in this guide are the:

You can print out the worksheets and complete them as you work through this part.

The worksheets are optional and your entity may prefer to use a different worksheet or a computer-based alternative. We have used these worksheets throughout this part of the guide as examples to help you complete the capital gains item on your entity’s tax return, and a CGT schedule if this is required.

CGT schedule

Your entity must complete this schedule for 2017–18 if:

  • the total current year capital gains are greater than $10,000, or
  • the total current year capital losses are greater than $10,000, or
  • you have chosen to apply the transitional CGT relief in 2016–17 and a realisation event occurred in 2017–18. For more information regarding transitional CGT relief, see LCR 2016/8 Superannuation reform: transitional CGT relief for complying superannuation funds and pooled superannuation trusts.

If your entity is required to complete a CGT schedule, you must attach it to your entity’s 2018 tax return.

In the worksheets and CGT schedule at the back of this guide:

  • 2017–18 capital gain (CYCG)
  • 2017–18 capital losses (CYCL) and
  • prior income year net capital losses (PYNCL)

refer to 2017–18 and prior income years.

Consolidated groups

If a group consolidated during 2017–18, 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 2017–18 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.

For more information on the operation of consolidation, see Consolidation.

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.

Steps you need to take

The completion of the CGT labels on your entity’s 2018 tax return involves a three-step process (for entities with capital gains or capital losses under the $10,000 threshold) or a four-step process (for entities with capital gains or capital losses over the $10,000 threshold) or if you are a superannuation fund (or pooled superannuation trust) recognising a capital gain in 2017-18 that was deferred in 2016–17 under the transitional CGT relief:

  • Step 1 Calculate the capital gain or capital loss for each CGT event that happens during 2017–18 using the Capital gain or capital loss worksheet.
  • Step 2 Calculate the net capital gain for 2017–18 or net capital losses carried forward to later income years using the CGT summary worksheet.
  • Step 3 Complete the capital gains item on your entity’s tax return.
  • Step 4 If required, complete a CGT schedule. If you have chosen to apply transitional CGT relief in 2016–17 and a realisation event occurred in 2017-18, you must complete a CGT schedule.

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