This guide will help you work out whether any of the assets you own or may own in the future, and any events that happen, are subject to CGT. It tells you how to work out your capital gain or capital loss, and what records you need to keep.
Terms used
We may use some terms that are new to you. These words are explained in Definitions. Generally, they are also explained in more detail in the section where they first appear.
While we have sometimes used the word ‘bought’ rather than ‘acquired’, you may have acquired an asset subject to CGT (a CGT asset) without paying for it (for example, as a gift or through an inheritance). Similarly we refer to ‘selling’ when you may have disposed of it in some other way (for example, by giving it away or transferring it to someone else). Whether by sale or by any other means, these disposals are CGT events.
Your tax return
You may have a capital gain or capital loss for 2020–21 whether you are an individual or an entity (company, trust or fund). This guide will help you to complete the capital gains item on your tax return.
Worksheets
The two CGT worksheets provided will help you keep track of your records and make sure you pay no more CGT than necessary.
There is:
- a Capital gain or capital loss worksheet (PDF 148KB)This link will download a file for working out your capital gain or capital loss for each CGT event
- a CGT summary worksheet for 2021 tax returns (PDF 254KB)This link will download a file (CGT summary worksheet) to help you summarise your capital gains, capital losses and produce the final net amount you need to include on your tax return.
You can print out these forms and complete them as you work through the guide.
CGT schedule
If you are a company, trust, attribution managed investment trust (AMIT) or superannuation fund with total capital gains or capital losses of more than $10,000 in 2020–21 or you are a superannuation fund (or pooled superannuation trust) recognising a capital gain in 2020–21 that was deferred in 2016–17 to apply transitional CGT relief, you must complete a Capital gains tax schedule 2021 (CGT schedule). Multi-class AMITs must lodge a separate CGT schedule for each class that has total capital gains or losses of more than $10,000. If you entered into an earn-out arrangement, which requires an amendment to a prior year's assessment, you should also lodge a schedule. Partnerships and individuals who lodge a paper tax return are not required to lodge a schedule.
See part C for an explanation of the CGT schedule. Part C provides instructions for companies, trusts and funds. Instructions for individuals are in part B of this guide. Yet individuals who have entered into an earn-out arrangement will also have to refer to item 7 of step 4 of part C if they need to make an amendment to a prior year's assessment.