Guide to capital gains tax 2016

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Introduction

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.

New terms

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' such an asset 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, all of these disposals are CGT events.

Your tax return

Whether you are an individual or an entity (company, trust or fund), if you have a capital gain or capital loss for 2015-16, this guide will help you to complete the capital gains item on your tax return.

Worksheets

You may wish to use the two CGT worksheets provided to 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, 198KB) for working out your capital gain or capital loss for each CGT event
• a CGT summary worksheet for 2015-16 tax returns (PDF, 309KB) (CGT summary worksheet) to help you summarise your capital gains and 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 this income year, you must complete a Capital gains tax (CGT) schedule 2016 (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. Partnerships and individuals who lodge a paper tax return are not required to lodge a schedule. Individuals who have entered into an earnout arrangement which requires an amendment to a prior year's assessment should also lodge a schedule.

The CGT schedule is explained in detail in Part C . Part C provides instructions for companies, trusts and funds. Although the instructions for individuals are in part B of this guide, individuals who have entered into an earnout arrangement will also have to refer to Item 7 of Step 4 of Part C if an amendment to a prior year's assessment is required.

ATO references:
NO NAT 4151