How CGT works and your obligations
The Guide to capital gains tax 2024 explains how CGT works and will help you calculate your net capital gain or net capital loss for 2023–24. The guide will help you to meet your CGT obligations. We also provide CGT worksheets to help you keep CGT records and work out your capital gain or loss.
If you're an individual who has made a capital gain or loss from selling shares and units, or received a distribution of a capital gain from a managed fund, you may prefer to use Capital gains tax personal investors guide 2024.
If you have a small business, see Small business CGT concessions.
CGT positions not dealt with in this guide
This guide does not deal fully with the CGT position of the following:
- An individual or entity that is not an Australian resident for tax purposes.
- Companies, trusts and funds – see, CGT schedule and instructions 2024.
- A company that is the head company of a consolidated group –see, Consolidation.
This guide doesn't cover individuals or entities whose gains or losses are not subject to CGT but are covered under other tax law. For example, gains or losses from:
- carrying on a business of share trading
- net profit or loss from profit-making activity of renovating properties.
CGT schedule for individuals
Whether you need to lodge a CGT schedule will depend on how you lodge your tax return and the amount and type of your capital gains and losses.
Online tax return lodgments
If you lodge online using myTax as an individual or partner in a partnership, you will need to complete a Capital gains tax schedule 2024, if:
- a CGT event happened in 2023–24 and your total current year capital gains or losses are more than $10,000
- you received a distribution from a trust (including a managed fund) that included receiving a net capital gain of more than $10,000
- you select the capital gains tax exemption, rollover or additional discount type code W: Affordable housing discount
- you entered into an earn-out arrangement, which requires an amendment to a prior year's assessment – see Instructions to complete the CGT schedule and tax return 2024, item 7 – step 4.
Paper tax return lodgments
Partnerships and individuals who lodge a paper tax return are not required to lodge a CGT schedule.
For information on the CGT schedule for individuals and partners in a partnership, see Instructions for individuals completing their tax return.
If you are an individual who has entered into an earn-out arrangement and need to make an amendment to a prior year's assessment, see item 7 – step 4 of Instructions to complete the CGT schedule and tax return 2024.
CGT worksheets
The 2 CGT worksheets will help you keep track of your records and work out any capital gains or capital losses you need to include in your tax return.
There is:
- a Capital gain or capital loss worksheet 2024 – work out your capital gain or capital loss for each CGT event
- a CGT summary worksheet for tax returns 2024 – summarise your capital gains, capital losses and produce the final net amount you need to include in your tax return.
You can print out these forms and complete them as you work through the guide.
Terms we use in the guide to CGT
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.
For more information on the terms we use, see Definitions.
Continue to: What's new with CGT?