Step 4 How to complete the CGT schedule

Your entity must complete a CGT schedule 2020 if:

• the total 2019–20 capital gains are greater than $10,000, or
• the total 2019–20 capital losses are greater than $10,000, or
• you have chosen to apply transitional CGT relief in 2016–17 and a realisation event occurred in 2019–20. For more information on 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, attach it to your entity’s 2019 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 2019 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 2019–20 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

Transfer the amounts at 1A–1I and 1S for capital gains and from 1K–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, transfer 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–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, transfer 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

Transfer 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

Transfer 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

Transfer 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 are 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. If you satisfy all the conditions above, you can request such amendment via this schedule by completing labels 7F and 7G.

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
• 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.

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, 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
• 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 with your tax return. Keep them 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 schedules, 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 2019–20, show the capital gains and losses arising from those asset transfers at Total capital gains from transfers to other classes.