Things to know
Complete this section if a capital gains tax (CGT) event happened in 2023–24. You may have made a capital gain, capital loss, or you may be entitled to apply an exemption or rollover.
For most CGT events, you make a:
- capital gain if the amount of money and property you received, or were entitled to receive, from the CGT event was more than the cost base of your asset; you may then have to pay tax on your capital gain
- capital loss if the amount of money and property you received, or were entitled to receive, from the CGT event was less than the reduced cost base of your asset.
Don't show at this section a 'listed investment company capital gain amount' included in a dividend paid by a listed investment company. See Dividend deductions.
Did you have a capital gains tax event in 2023–24?
There is a wide range of CGT events. The most common CGT event happens when you sell or give away a CGT asset, such as:
- real estate, including your family home, holiday home, investment property, hobby farm or vacant block of land
- shares and similar investments
- units in a unit trust or managed investment fund
- forestry managed investment scheme interests (as a subsequent participant)
- crypto assets
- collectables, for example, jewellery
- personal use assets.
Other CGT events happen, such as:
- an asset you owned was lost or destroyed
- you received an amount for entering into an agreement, for example, you agreed not to work in a particular industry for a set time period
- you entered a conservation covenant over land that you owned
- you received a non-assessable payment from a trust or company
- when you stop being an Australian resident for tax purposes.
You may also have made a capital gain if:
- you were a beneficiary of, or had money invested in, a trust (including a managed investment fund), and
- the trust made a capital gain.
If you are not sure whether a CGT event happened in 2023–24, see Appendix 1, Summary of CGT events in Guide to capital gains tax.
You can't deduct a capital loss from your assessable income, but in most cases, it can be used to reduce a capital gain you made in 2023–24. If you made no capital gain in 2023–24, defer the capital loss until you make a capital gain.
Generally, you disregard a capital gain or capital loss on:
- disposal of your main residence, if you were an Australian resident for tax purposes when you signed the sale contract
- assets you acquired before 20 September 1985
- cars, motorcycles and similar vehicles
- personal use assets such as boats, furniture, electrical goods and household items used or kept mainly for personal use or enjoyment which you acquired for $10,000 or less. If you acquired it
- for more than $10,000, you disregard only capital losses
- for $10,000 or less, you disregard both capital gains and capital losses
- collectables, for example an antique or jewellery, which you acquired for $500 or less
- compensation you received for personal injury
- the exchange of shares or units you owned in a company or trust under a takeover, if certain conditions were met
- shares in a company, or interests in a trust, where there was a demerger and certain conditions were met
- disposal of shares in a pooled development fund
- shares in a qualifying early stage innovation company (ESIC) held for less than 10 years and, in the case of capital gains, the shares were also held for at least 12 months – see Tax incentives for early stage investors
- disposal of certain investments by
- a venture capital limited partnership
- an early stage venture capital limited partnership
- an Australian venture capital fund of funds
- disposal of an asset to which the small business 15-year exemption applies
- transfer of an asset where the Small business restructure roll-over is available (gains or losses are deferred until the asset is disposed of).
If you have received or are entitled to a Share of the income of a trust or managed fund, there may be CGT consequences depending on the component(s) of the distribution.
If you are a foreign resident beneficiary of a trust, and if 'managed-investment trust withholding tax' is payable on an amount that you received from that trust (other than in the capacity of a trustee), don't include any part of that amount on your tax return.
Real estate
Most Real estate is subject to CGT. Generally you disregard a capital gain or loss on Your main residence (your home) if you were an Australian resident for tax purposes when you signed the sale contract.
When 2 people separate or divorce, assets transferred between them usually qualify for the Relationship breakdown rollover.
If you have provided affordable rental housing to people earning low to moderate income you may be entitled to Tax incentives for investments in affordable housing.
Granny flat arrangements
From 1 July 2021 no CGT event arises to eligible individuals on certain granny flat arrangements if the arrangement satisfies the requirements of the provisions. A granny flat arrangement is a written agreement that gives an eligible person the right to occupy a property for life.
The CGT exemption will apply to the creation, variation or termination of a granny flat arrangement. To learn more, see Granny flat arrangements and CGT.
Tax incentives for investments in affordable housing
Australian resident individuals who provide affordable housing to people earning low to moderate income are allowed an additional capital gains tax (CGT) discount of up to 10%.
This increases the maximum capital gains discount percentage on capital gains upon the sale of this property from 50% up to 60% for eligible investors.
To determine your eligibility for the affordable housing discount, see CGT discount for affordable housing.
Inheritance
CGT applies when you dispose of a CGT asset that you inherited. See Inherited assets and capital gains tax for more information on the tax treatment and capital gains exemptions of inherited assets.
Employee share schemes
If you have an interest in an employee share scheme (ESS), CGT may apply. See ESS and capital gains tax for more information on the CGT consequences for shares acquired under an employee share scheme.
Norfolk Island residents
For Norfolk Island residents, CGT may apply to assets acquired after 23 October 2015. CGT remains payable on Australian mainland assets.
Foreign and temporary residents
If you are a foreign resident, for information on whether the main residence exemption applies to you see, Main residence exemption for foreign residents.
The 50% CGT discount is not available to foreign and temporary resident individuals. You can only apply the discount to part of your capital gain if either of the following happened:
- you acquired the asset on or before 8 May 2012
- you had a period of Australian residency after 8 May 2012.
Under the Foreign resident capital gains withholding rules, foreign residents that dispose of certain Australian assets may have an amount withheld from the sale proceeds they receive. For more information on amounts withheld from sale proceeds, see Capital gains withholding: Impacts on foreign and Australian residents.
Video tutorials
We’ve developed a series of videos designed to help you complete the capital gains section of myTax, see myTax capital gains or losses digital resources.
Completing this section
Before completing this section, read What you may need.
We have shown any:
- Capital gains you have at the Managed fund and trust distributions section.
- Shares or real estate disposal information provided to us, and
- We may provide a link to additional shares and units records unable to be displayed in myTax. This link will open a new window. When you have finished reviewing those records go back to myTax, which will be open in another tab or window.
- If shares or units amounts differ to your own records, check if the difference is the brokerage fee. To learn more, see shares or units capital proceeds data. Note that the amounts shown have not been apportioned by your ownership percentage.
- Capital loss carried forward from your 2022–23 tax return.
- Indicator that you may have a CGT event for a crypto asset.
You can't delete information only pre-fill for details of share disposals, transfer of property or crypto assets. To learn more, see What if you don’t agree with the pre-filled information?
Check for any other CGT event information not pre-filled and include it all when calculating your capital gain or loss.
If you have an exemption or rollover that may allow you to reduce, defer or disregard your capital gain or capital loss, see CGT events and applying an exemption or rollover.
If you have a capital gain in the Managed fund and trust distributions section, see Capital gains, managed funds and trusts.
To personalise your return to show capital gains or losses, at Personalise return select:
- You had Australian interest, or other Australian income or losses from investments or property.
- Capital gains or losses that are not from a managed fund or trust distribution.
To show your capital gains or losses, at Prepare return select 'Add/Edit' at the Capital gains or losses banner.
At the Capital gains or losses heading:
- Answer the question Have you applied an exemption, rollover or additional discount? These may allow you to reduce, defer or disregard your capital gain or capital loss. To understand whether you have applied an exemption, rollover or additional discount, see CGT exemption, rollover or additional discount.
If No, go to step 3.
If Yes, go to step 2. - Select the Capital gains tax exemption, rollover or additional discount type code that you are eligible for.
If several apply, use the code that applies to the largest value. For more information about these codes, see CGT exemption, roll-over or additional discount type code. - Work out the capital gains or loss amounts to show at this section using the CGT record keeping tool, or manually calculate your capital gains or loss.
The CGT record keeping tool can help work out basic gain or loss events. CGT pre-fill data shown in myTax will be transferred to the tool.
If you do use the CGT record keeping tool, go to Step 7.
Otherwise, if you manually calculate your capital gain or loss, read on. - Enter your Total current year capital gains.
This is the total of your capital gains for the year (excluding exempt or rolled over amounts). Don’t apply capital losses, any CGT discounts or small business concessions yet (other than the 15-year exemption). For more information, see Total current year capital gains. - Enter your Net capital gain.
This is the amount remaining after subtracting capital losses, CGT discounts and small business concessions from the total current year capital gain. For information, see Net capital gain. - Enter your Net capital loss carried forward to later income years.
This is any net capital loss for the current year plus any unapplied loss from a prior year. You can use this to reduce a capital gain in future years. For more information, see Net capital losses carried forward to later income years. - Enter your Credit for foreign resident capital gains withholding amounts.
This is the amount withheld from asset sale proceeds under the Foreign resident capital gains withholding rules. For more information, see Credit for foreign resident capital gains withholding amounts. - Complete the Capital gains tax schedule, if either:
- your current year capital gain or loss is more than $10,000
- you select the Capital gains tax exemption, rollover or additional discount type code of 'W: Affordable housing discount'.
- Select Save and continue when you have completed the Capital gains or losses section.
If foreign tax was paid on a foreign gain of a capital nature, see Other foreign income to work out the amount of foreign income tax offset you can claim and where to show this amount.
More information
More information about completing the capital gains or losses section of your return using myTax.
- Capital gains, managed funds and trusts
- CGT exemption, rollover or additional discount
- CGT exemption, roll-over or additional discount type code
- Total current year capital gains
- Net capital gain
- Net capital losses carried forward to later income years
- Credit for foreign resident capital gains withholding amounts
Capital gains, managed funds and trusts
If your Managed fund or Trust distribution includes a capital gains component, how you complete the rest of your myTax return will depend on your circumstances.
If your only capital gains are from managed funds or trusts and shown at the Managed fund and trust distributions section and:
- your current year capital gains are $10,000 or less, you do not need to complete the Capital gains or losses section.
- your current year capital gains are more than $10,000, you need to complete the Capital gains or losses section
- myTax will complete Total current year capital gains and Net capital gain in the Capital gains or losses section from the information shown in the Managed fund and trust distributions section
- you will need to complete the Capital gains tax schedule
- Go to Step 7 in Completing this section.
If you have other capital gains tax events during the year or you have carried forward capital losses from a prior year:
- you need to compete the Capital gains or losses section
- the capital gains amounts shown in the Managed fund and trust distributions section will be automatically carried over to the Capital gains or losses section for you to review
- you will need to ensure that all your capital gains from managed funds and trusts are included in what you show at Total current year capital gains and Net capital gain
- Go to Step 1 in Completing this section.
Return to Completing this section.
CGT exemption, rollover or additional discount
There are exemptions and rollovers that may allow you to reduce, defer or disregard your capital gain or capital loss.
There is also an additional discount on capital gains for resident individuals who invest in affordable housing.
If you applied an exemption or rollover to disregard or defer a capital gain or capital loss, or you qualified for and applied the additional affordable housing discount to reduce a capital gain, answer Yes to the question Have you applied an exemption, rollover or additional discount?.
For more information about CGT exemptions and rollovers, see Guide to capital gains tax.
CGT events and applying an exemption or rollover
How you complete this section will depend on your circumstances:
- If you applied a full exemption or rollover to disregard or defer capital gains or capital losses, for example if you are continuing to treat your former home as your main residence, when completing the Capital gains or losses section
- at step 1, answer Yes to the question Have you applied an exemption, rollover or additional discount?
- at step 2, select the CGT exemption, roll-over or additional discount type code that best describes your circumstances.
- do not complete Total current year capital gains and Net capital gain.
- If you applied a partial exemption or rollover to disregard or defer some capital gains or capital losses, when completing the Capital gains or losses section
- at step 1, answer Yes to the question Have you applied an exemption, rollover or additional discount?
- at step 2, select the CGT exemption, roll-over or additional discount type code that best describes your circumstances.
- add up all your capital gains for 2023–24 (except those that are disregarded) to work out your Total current year capital gains. Don’t apply capital losses, any CGT discounts or the small business concessions (other than the 15-year exemption) to these capital gains.
- work out your Net capital gain or Net capital loss carried forward to later income years.
Return to Completing this section.
CGT exemption, roll-over or additional discount type code
Using the table below, choose the exemption, rollover or additional discount code that best describes your circumstances. If more than one code applies, choose the code that applies to the largest amount of capital gain.
Return to Completing this section.
Total current year capital gains
If you do not have any capital gains from collectables, add up all of your capital gains and enter the amount at Total current year capital gains.
If you have a capital gain from collectables, for guidance on calculating your current year capital gains, see Guide to capital gains tax.
Market participants (for example, brokers) will report capital proceeds data to you. Review this information when completing your Total current year capital gains. To learn more about if pre-filled shares or units amounts differ to your own records, see shares or units capital proceeds data.
Shares or units capital proceeds data
Some market participants (for example, brokers) may report capital proceeds data to you differently to how they report it to the ATO:
- the sale amount (capital proceeds) reported to you is reduced by the brokerage fees incurred
- the capital proceeds reported to the ATO is not reduced by brokerage fees.
While both amounts reported are correct, the different amounts may be confusing and lead to incorrect calculation and reporting of the capital gain.
|
Company code |
Pre-filled capital proceeds amount (provided by reporter to ATO and pre-filled) |
Sale amount (provided by reporter to you) |
Difference |
|---|---|---|---|
|
XYZ |
$3,500.97 |
$3,481.02 |
$19.95 |
|
ZYX |
$4,341.80 |
$4,321.85 |
$19.95 |
Check your amounts in your pre-filling service for accuracy. Shares and units pre-filling is informational only and entering differing amounts into your tax return will not prevent you from lodging.
Return to Completing this section.
Net capital gain
This is the amount remaining after applying to your 2023–24 capital gains whichever of the following items are relevant to you (in the order listed)
- 2023–24 capital losses
- unapplied net capital losses from earlier years
- any CGT discounts (including any CGT discount for affordable housing)
- small business CGT concessions
- the small business 50% active asset reduction
- the small business retirement exemption or rollover.
If you have capital losses to apply, you will find it to your advantage to apply them first to any capital gains that don’t qualify for the CGT discount.
If you have a discount capital gain, you may not be entitled to the maximum CGT discount percentage of 50% if you are an individual (including a beneficiary of a trust) and either:
- a foreign or temporary resident
- an Australian resident with a period of non-residency after 8 May 2012.
For more information, see CGT discount for foreign residents.
If the total amount remaining is positive or zero, enter the amount.
If you have a negative amount, enter zero. You have net capital losses to carry forward to later income years.
You can only use capital losses from collectables to reduce capital gains from collectables. You must disregard capital losses from personal use assets.
Return to Completing this section.
Net capital losses carried forward to later income years
If you have a negative amount from your calculation of Net capital gain, you have a net capital loss to carry forward to later income years. You can use net capital losses from earlier years that you have not yet used to reduce a capital gain in later years.
You will need to keep a separate record of unapplied net capital losses from collectables because you can only use these to reduce capital gains from collectables in later income years. There is no time limit on how long you can carry forward the net capital losses.
Return to Completing this section.
Credit for foreign resident capital gains withholding amounts
Foreign resident capital gains withholding applies to certain transactions entered into on or after 1 July 2016. If an amount has been withheld from you and paid to the ATO we will advise you of the receipt of the withholding amount.
For more information, see Capital gains withholding: Impacts on foreign and Australian residents.
Do not include amounts for the Foreign income tax offset (FITO) at this label. To find out how to claim the foreign income tax offset, see Foreign income tax offset.
Return to Completing this section.
What you may need
Before you start this section, you may want to ensure that you have your CGT details at hand, as well as helpful publications about CGT.
Your CGT details
These may include:
- details of the amount of any unapplied net capital losses from earlier years
- documents showing
- the date you acquired any asset to which a CGT event happened
- the date of the CGT event
- the date and amounts of any expenditure you incurred that
- form part of the cost base and reduced cost base of the asset
- are required to work out your capital gain or capital loss
- year-end, annual or distribution statements from trusts with net capital gains from which you received or were entitled to receive
- distributions of income
- distributions of non-assessable amounts.
Helpful publications
You may also need one or more of the following publications to complete this section. They explain the 3 methods available to calculate a capital gain: the indexation method, the discount method and the 'other' method.
- Capital gains tax explains what a capital gain is, how it applies, what assets are included and the exceptions and exemptions.
- Guide to capital gains tax explains how CGT works and will help you to calculate your net capital gain or net capital loss. It covers:
- the sale of a rental property
- vacant land
- a holiday home
- collectables (for example, jewellery)
- personal use assets (for example, a boat you use for recreation)
- real estate, shares and units you inherited or got from the breakdown of your marriage or relationship.
- Small business CGT concessions explains what concessions are available to small businesses.
- Keeping records explains what to record and how long you need to keep records.
- Personal investors guide to capital gains tax is shorter and simpler than Guide to capital gains tax. It covers
- the sale, gift or other disposal of shares and units
- distribution of capital gains from managed funds
- non-assessable payments from companies and managed funds.
The Personal investors guide to capital gains tax does not cover other CGT events, nor the CGT consequences for bonus shares, shares acquired under an employee share scheme, bonus units, rights and options, and shares and units where a takeover or demerger has occurred. For those see Guide to capital gains tax.
Share of the income of a trust or managed fund
Managed funds (unit trusts) include:
- property trusts
- share trusts
- equity trusts
- growth trusts
- imputation trusts
- balanced trusts.
Other trusts include:
- discretionary trusts
- family trusts
- hybrid trusts
- business trusts.
Distributions from trusts and managed funds can include 2 components that have CGT consequences:
- distributions of trust income where the trust's net income for tax purposes includes a net capital gain
- distributions of non-assessable amounts.
You need to know whether your distribution includes these 2 amounts. To find out, check the statement (distribution statement, year-end or annual statement) from the trust. The statement should also show which method the trust used to calculate the capital gains included in the trust's net capital gain. There are 3 methods of calculating capital gains:
- indexation
- discount
- 'other'.
You must use the same method as the trust to calculate your own net capital gain.
Trustees and fund managers may use different terms to describe the calculation methods used and they may refer to capital gains calculated using the indexation and 'other' methods as 'non-discount gains'. If you are in doubt, check with your trust or fund manager.
Your distribution statement may include amounts called:
- NCMI (Non-concessional MIT income) capital gains
- Excluded from NCMI capital gains
Include both these amounts in the calculation of the net capital gain.