A fund makes a capital gain or capital loss if certain events or transactions happen. These are called CGT events. CGT events usually happen to a fund's CGT assets, such as the disposal of an asset. However, some CGT events relate directly to capital receipts.
If the fund ceases to hold or to use a depreciating asset that was used for both taxable and non-taxable purposes, a CGT event may happen in respect of the asset. A capital gain or capital loss may arise to the extent that the asset was used for a non-taxable purpose. For more information, see the Guide to depreciating assets 2009 (NAT 1996).
The capital gain or capital loss can be disregarded for some CGT events. For example, a capital gain or capital loss in relation to segregated current pension assets of a complying superannuation entity is disregarded.
For more information about CGT events see:
- Guide to capital gains tax 2009. This publication includes
- a capital gain or capital loss worksheet for calculating a capital gain or capital loss for each CGT event
- a CGT summary worksheet for calculating the fund's net capital gain or capital loss, and
- a Capital gains tax (CGT) schedule 2009 (NAT 3423).
Guide to capital gains tax 2009 also explains the rules in relation to Australian CGT liabilities for foreign residents and trustees of foreign trusts.
The worksheets will help you calculate the net capital gain or capital loss for the income year and complete the CGT questions on the fund tax return. You do not have to complete the worksheets; but if you do, do not attach them to the fund tax return; keep them with the fund's tax records.
If during the income year a CGT event happened for the fund or the fund received a distribution of a capital gain from a trust, print X in the Yes box at G. Otherwise, print X in the No box. If you select Yes, you must complete the Capital gains tax (CGT) schedule 2009 (CGT schedule) and attach it to the fund tax return if:
- total current year capital gains for the income year are greater than $10,000, or
- total current year capital losses for the income year are greater than $10,000.
Z Did the CGT event relate to a forestry managed investment scheme interest that you held other than as an initial participant?
The sale of thinnings and harvested trees from a forestry managed investment scheme (FMIS) is a CGT event.
The fund is an initial participant in an FMIS if:
- the fund obtained its forestry interest in the FMIS from the forestry manager of the scheme, and
- the fund's payment to obtain the forestry interest in the FMIS results in the establishment of trees.
The fund is a subsequent participant if it is not an initial participant.
The forestry manager of an FMIS is the entity that manages, arranges or promotes the FMIS.
A forestry interest in an FMIS is a right to the benefits produced by the FMIS (whether the right is actual, prospective or contingent, and whether it is enforceable or not).
Print X in the appropriate box.
If you selected Yes, you must complete a Capital gains tax (CGT) schedule 2009 and attach it to the fund's tax return.