Guide to capital gains tax 2011

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Part C - Instructions for companies, trusts and funds (entities)

Individuals: if you use the worksheets and need help completing them, read steps 1, 2 and 3 in this part (ignore the word 'entity')

Read this first

Are you an individual?

If you are completing a tax return on behalf of an individual (rather than an entity), read part   B .

If you need help completing the:

• Capital gain or capital loss worksheet (PDF, 79KB), read step   1 of this part (ignoring the word 'entity')
• CGT summary worksheet 2011 (PDF, 205KB), read steps 2 and 3 in this part.

Is your entity a company, trust or fund?

Read this part.

Do you expect your entity's total capital gains or total capital losses for the 2010-11 income year to be $10,000 or less?

Yes	Work through steps 1 to 3.
No	Work through steps 1 to 4. Step 4 will show you how to complete the CGT schedule.

Introduction

The instructions in this part are designed to help companies, trusts and funds (your entity) to calculate a capital gain or capital loss and to complete the capital gains items on the relevant tax return:

• Company tax return 2011 item 7
• Trust tax return 2011 item 21
• Fund income tax return 2011 item 10
• Self managed superannuation fund annual return 2011 item   10 .

Funds include superannuation funds, approved deposit funds and pooled superannuation trusts.

A self managed superannuation fund is a fund with fewer than five members that meets the requirements of section 17A of the Superannuation Industry (Supervision) Act 1993 .

The labels to complete at these items on your entity's tax return are:

• G Did you have a CGT event during the year?
• A Net capital gain

You will also need to complete V Net capital losses carried forward to later income year s at the Losses information item on your entity's tax return.

The relevant item number on each tax return is:

• Company tax return 2011 item 12
• Trust tax return 2011 item 27
• Fund income tax return 2011 item 13
• Self managed superannuation fund annual return 2011 item   13 .

New terms We may use some terms that are new to you. These words are explained in Definitions . Generally, they are also explained in detail in the section where they first appear.

Entity The term 'entity' is used to describe a company (including a head company of a consolidated group), a trust and a fund in this part of the guide.

Worksheets

The worksheets provided in this guide are the:

• Capital gain or capital loss worksheet (PDF, 96KB) (to calculate the capital gain or capital loss from each CGT event)
• CGT summary worksheet 2011 (PDF, 205KB) for 2011 tax returns (to calculate the net capital gain for the 2010-11 income year or net capital losses carried forward to later income years and to complete the CGT labels on the 2011 tax return).

You can print out the worksheets and complete them as you work through this part.

The worksheets are optional and your entity may prefer to use a different worksheet or a computer-based alternative. We have used these worksheets throughout this part of the guide as examples to help you complete the capital gains item on your entity's tax return, and a CGT schedule if this is required.

CGT schedule

Your entity must complete this schedule for the 2010-11 income year if the:

• total current year capital gains are greater than $10,000, or
• total current year capital losses are greater than $10,000.

If your entity is required to complete a CGT schedule, you must attach it to your entity's 2011 tax return.

In the worksheets and CGT schedule at the back of this guide, 'current year capital gain' (CYCG), 'current year capital losses' (CYCL) and 'prior year net capital losses' (PYNCL) refer to 'current income year' and 'prior income year'.

Consolidated groups If a group consolidates during the income year, the head company must lodge a CGT schedule if the total capital gains or total capital losses that it makes (as head company of the consolidated group and while not a member of a consolidated group) are greater than $10,000. An entity that has joined a consolidated group or groups during the year of income as a subsidiary member must lodge a CGT schedule covering any periods of non-membership if the entity satisfies the requirements for lodgment of that schedule. Detailed information on the operation of consolidation is available at Consolidations .

Steps you need to take

The completion of the CGT labels on your entity's 2011 tax return involves a three-step process (for entities with capital gains or capital losses under the $10,000 threshold) or a four-step process (for entities with capital gains or capital losses over the $10,000 threshold):

Step 1 Calculate the capital gain or capital loss for each CGT event that happens during the 2010-11 income year using the Capital gain or c apital loss worksheet .

Step 2 Calculate the net capital gain for the 2010-11 income year or net capital losses carried forward to later income years using the CGT summar y worksheet .

Step 3 Complete the capital gains item on your entity's tax return.

Step 4 If required, complete a CGT schedule.

Step 1 How to complete the capital gain or capital loss worksheet for each CGT event

The Capital gain or capital loss worksheet calculates a capital gain or capital loss for each separate CGT event. Do not attach completed worksheets to your entity's 2011 tax return. These are your working papers and should be kept with your entity's tax records.

There are a few things to remember when you are using the worksheet.

Firstly, you show the type of CGT asset or CGT event that resulted in the capital gain or capital loss.

Organise each of these under one of the following six categories:

• shares and units in unit trusts
• forestry management investment scheme interest
• real estate
• other CGT assets (including personal use assets) and any other CGT events
• collectables
• hedging financial arrangements.

Secondly, there are special rules that apply when working out a capital gain or capital loss for a depreciating asset. A capital gain or capital loss will only arise to the extent that a depreciating asset is used for a non-taxable purpose (for example, used privately). You calculate the capital gain or capital loss according to concepts used in the uniform capital allowance provisions. Those provisions also treat as income or allow as a deduction any gain or loss from a depreciating asset to the extent that it was used for a taxable purpose.

Thirdly, if a capital gain was made, you calculate it using the:

• indexation method (see note   2 of the worksheet) for capital gains made on CGT assets acquired before 11.45am (by legal time in the ACT) on 21   September 1999 and owned for at least 12   months
• discount method (see note   3 of the worksheet) for assets owned for at least 12   months and for which you are not using the indexation method, or
• 'other' method (if neither the indexation method nor the discount method applies).

These three methods of calculating a capital gain are explained in full in part   A chapter   2 and are also listed in Definitions .

When choosing between the indexation and discount methods, the amounts at (a) and (b) at the bottom of the worksheet do not yet reflect any capital losses or CGT discount you may be able to apply. This affects your choice of the amount to transfer to the CGT summary worksheet, which you can use to calculate your net capital gain or net capital loss.

Transfer the capital gain or capital loss calculated on each Capital g ain or capital loss worksheet to the CG T summary wo rksheet . Transfer a capital gain according to the method you used to calculate it and the type of asset that gave rise to it.

Step 2 How to complete the CGT summary worksheet for 2011 tax returns

You use the CGT summary worksheet to calculate your entity's net capital gain for the 2010-11 income year or net capital losses carried forward to later income years. It also provides the information you need to complete the capital gains item on your entity's tax return and, if required, the CGT schedule.

You should include on this worksheet any capital gain your entity is entitled to as a distribution from a trust.

The CGT summary worksheet is designed for entities that make capital gains or capital losses during the income year. However, you may also find it useful if you are an individual (including a partner in a partnership) who has more complex CGT affairs.

The CGT summary worksheet differentiates between capital gains from active assets and non-active assets. Generally, an active asset is a business asset the entity owns, for example, goodwill of a business.

A share and an interest in a trust can also be active assets if certain conditions are met.

There are four small business CGT concessions that may apply to capital gains from active assets:

• The small business 15-year exemption: this exemption, subject to certain conditions being satisfied, means a capital gain is totally disregarded if you or your small business entity has continuously owned the CGT asset for at least 15   years, and
  • you are 55 years old or over and retiring, or
  • you are permanently incapacitated.
• The small business 50% active asset reduction: this concession provides a 50% reduction of a capital gain for an active asset.
  
   
• The small business retirement exemption: this allows you to disregard capital gains for active assets (up to a lifetime limit of $500,000) if the conditions are satisfied. If you are eligible for this exemption and are under 55   years old just before you choose it, you must pay the amount into a superannuation (or similar) fund.
  
   
• The small business rollover: this enables you to defer all or part of a capital gain if you acquire a replacement asset or make an improvement to an existing asset and satisfy other conditions.

To find out if your business is eligible for the small business CGT concessions, see the publication Capital gains tax (CGT) concessions for small business - overview .

Active assets At Active assets in the CGT summary worksheet (and the CGT schedule), you should only include a capital gain from an active asset that qualifies for one or more of the following three small business CGT concessions: small business 50% active asset reduction small business retirement exemption small business rollover. If the asset does not qualify for one or more of these three concessions, include the capital gain at Non-active assets .

Limit on value of assets Where the turnover of your entity and related entities exceeds $2   million, the small business CGT concessions are only available if the net value of the assets of your entity and related entities just before the CGT event do not exceed $6   million. For more information see our fact sheet Capital gains tax (CGT) concessions for small business - more changes for the 2007-09 years . If your entity is not entitled to the small business concessions, include the capital gain at Non-active assets.

Life insurance companies Life insurance companies, including friendly societies that conduct life insurance business, need to complete two CGT summary worksheets, one for each class of income they derived (superannuation class and ordinary class income). You can only apply capital losses from one class of income against capital gains from that class of income. Combine the details from both summary worksheets onto one CGT schedule, if it is required.

The parts in this step relate to the parts of the CGT summary w o rksheet . Work through each relevant part to complete your worksheet.

Part A Total current year capital gains

In part A you write your entity's total current year capital gains.

Part A1 Current year capital gains from CGT assets and CGT events or a distribution from a trust that includes a capital gain (other than capital gains from collectables)

What to include and exclude You generally do not include any capital gain to which an exemption (for example, the small business 15-year exemption) or exception applies. However, you must include in the Active assets columns capital gains for which your entity may be exempt because it is entitled to one or more of the following: small business 50% active asset reduction small business retirement exemption small business rollover. If a capital gain does not qualify for one or more of these three concessions, include it at Non-active assets .

At A to H and M to U on this worksheet, write the current year capital gains (other than from collectables) transferred from the capital gain or capital loss worksheets.

Trust capital gains

You must also include at G to I and S to U on the worksheet any distribution from a trust of a net capital gain from a CGT event (other than one involving a collectable) that your entity is entitled to.

You must use the same method as the method used by the trustee to calculate your entity's capital gain from the trust. For example, if the trustee used the discount method to calculate a capital gain, you must use the discount method. In some cases, your entity must gross up the amount of the trust's capital gain. If this applies, you include the grossed-up amount at H , S , T and U , as explained below.

If the trustee used the discount method to calculate a capital gain, you need to gross it up by multiplying the distribution amount by two. Include the result at H . Grossing up ensures that any capital losses your entity has made are deducted from your entity's grossed-up capital gain before the CGT discount is applied.

If the trust's capital gain was reduced by the small business 50% active asset reduction, again it needs to be grossed-up by multiplying the distribution amount by two. Include the result at S or U .

If the trust's capital gain was reduced by the CGT discount and by the small business 50% active asset reduction, multiply the distribution amount by four and include the result at T .

Amount of capital gain

Write the full amounts of all capital gains in part A1 .

Do not apply:

• capital losses (which are applied at part   D of the worksheet)
• the CGT discount (which is applied at part   F of the worksheet)
• the small business CGT concessions (which are applied at part G of the worksheet).

Transfer the amounts at A1 to A6 to the corresponding A1 to A6 in part   A3 of the CGT summary worksheet.

Part A2 Capital gains and capital losses from collectables

Did your entity make a capital gain or a capital loss from a collectable during the income year? Or did the entity receive a distribution from a trust during the income year that includes a net capital gain from a collectable?

Yes	Read on.
No	Go to part A3 .

Transfer any capital gains from collectables from the capital gain or capital loss worksheets to C1 , C2 or C3 on your CGT summary worksheet. Transfer any capital losses from collectables to C4 on your CGT summary worksheet.

If your entity was entitled to a distribution of a net capital gain from a trust resulting from a collectable, write this amount at C5 to C7 . You must use the same method as the trustee to calculate your entity's capital gain from the trust. For example, if the trustee used the discount method to calculate a capital gain, you need to do the same and write the grossed up amount at C6 .

If the trustee used the discount method to calculate a capital gain, gross it up by multiplying the distribution amount by two. Grossing up ensures that any capital losses your entity has made are deducted from your grossed-up capital gain before the CGT discount is applied.

Write the totals of all of your entity's capital gains from collectables at C8 to C10 .

Step A2.1 Apply any current year capital losses from collectables

If your entity has any current year capital losses from collectables, deduct these from any current year capital gains from collectables. This reduces your CGT obligation. If your entity has current year capital losses from collectables that can be deducted they must be deducted here. You cannot choose to defer to a later year any amount that can be deducted this year.

Does your entity have any current year capital gains from collectables?

No	Transfer the amount at C4 to H in part   I and then go to part   A3
Yes	Does your entity have a CYCL from a collectable?
	No	Transfer the amounts at C8 , C9 and C10 to 1E , 1F and 1G and then go to step   A2.2 .
	Yes	Read on.

Deduct any current year capital losses from collectables (written at C4 ) from your current year capital gains from collectables (written at C8 to C10 ).

You can do this in the order that gives the best result, which would usually be to apply the losses against capital gains calculated using the:

1. 'other' method
2. indexation method
3. discount method.

Write the amounts to be deducted from capital gains from your collectables at 1A to 1C, depending on the choice made about how to deduct the losses. Write the total losses from collectables deducted from gains from collectables ( 1A to 1C ) at 1D .

Write the resulting capital gains from collectables at 1E to 1G .

If your entity has net capital losses from collectables ( C4 minus 1D ), you can carry this forward to reduce the capital gains from collectables in later income years. There is no time limit on how long you can carry forward this loss. Transfer the amount of excess capital losses from collectables to H UNCL from collectables in part   I.

S tep A2.2 Apply any prior year net capital losses from collectables

Prior year net capital losses (PYNCL) are the unapplied net capital losses carried forward from earlier years.

If your entity has prior year net capital losses that can be deducted, deduct them here. You cannot choose to defer to a later year any amount that can be deducted this year.

Does your entity have any remaining current year capital gains from collectables?

No	If your entity has PYNCL, complete 2A , 2B and 2C , and transfer the amount at 2C to H in part I. Go to part   A3 .
Yes	Does your entity have a PYNCL from a collectable?
	No	Transfer the amounts at 1E , 1F and 1G in step A2.1 to J , K and L in part   A3 and continue from part   A3 .
	Yes	Read on.

At 2C , write the available prior year net capital losses from collectables after you have made any necessary adjustments for commercial debts forgiven written at 2B . For more information on commercial debts forgiven, see your entity's tax return instructions.

Again, you can deduct PYNCL from collectables from any remaining capital gains from collectables in the manner that produces the best result. You must, however, deduct them in the order in which they were made, for example, you should deduct a 1995-96 income year capital loss before a 1998-99 income year capital loss.

At 2D to 2F , write the amounts of prior year net capital losses from collectables in the order you have chosen.

At 2G , write the total amount of prior year net capital losses from collectables that you have deducted from the current year capital gains from collectables (2D to 2F ).

At J , K and L in step A2.2, write the capital gains from collectables after you have applied the current year capital losses and prior year net capital losses from collectables.

You can carry forward any unapplied net capital losses from collectables ( 2C minus 2G ) but in later income years you can only use them to reduce any capital gains from collectables (not from other CGT assets). There is no time limit on how long you can carry forward these losses.

When you have completed step A2.2, transfer:

• the amounts at J, K and L to the corresponding labels in part   A3, and
• the amount of unapplied prior year net capital losses from collectables (referred to above) to H UNCL from collectables in part   I (together with any net capital losses from collectables at step   A2.1).

Part A3 Total current year capital gains

In Part A3, add A1 and J , A2 and K , and A3 and L , to give A7 , A8 and A9 respectively.

Copy A4 , A5 and A6 down to A10 , A11 and A12 respectively.

At Total CYCG in part A3 , write the total of your entity's capital gains at A7 to A12 .

Your entity may not have any of the following losses: current year capital losses prior year net capital losses capital losses transferred in. In this case, transfer the amounts at A7 to A12 in part A3 to A to F in part   E and continue from part   F . If your entity has one or more of these losses, read on.

Part B Current year capital losses from CGT assets and CGT events, other than capital losses from collectables

In part B, write any current year capital losses your entity has made from:

• shares and units (in unit trusts) at A
• forestry managed investment scheme interest at T
• real estate at B
• hedging financial arrangements at U , and
• other CGT assets and any other CGT events at C .

Write the total at D .

You can transfer these from your capital gain or capital loss worksheets.

If your entity does not have any current year capital losses (other than from collectables), go to part   D .

Do not include any capital loss made from personal use assets at C   Other CGT assets and any other CGT events . You disregard capital losses from personal use assets and cannot apply them to reduce capital gains.

Do not write capital losses made from collectables in part   B, you should have shown them in part   A2.

Now go straight to part   D, there is no part   C in this worksheet.

P art D Apply capital losses against current year capital gains

In part D, write your entity's current year capital gains (CYCG) reduced by:

• current year capital losses, other than from collectables ( step   D1 )
• prior year net capital losses, other than from collectables ( step   D2 ), and
• capital losses transferred in (for companies only, step   D3 ).

S tep D1 Apply current year capital losses against total current year capital gains written at rows A7 to A12 above

If your entity has current year capital losses (other than capital losses from collectables) that can be deducted, you must deduct them here. You cannot choose to defer to a later income year any amount that can be deducted this income year.

Have you written current year capital gains for your entity at A7 to A12 in part   D?

No	Transfer D in part B to I in part I of the worksheet, then go to step   D2 .
Yes	Does your entity have CYCLs or PYNCLs, other than from a collectable, or capital losses transferred in?
	No	Transfer the amounts at A7 to A12 in part   D to A to F in part   E and continue from part   F.
	Yes	If your entity has CYCL, read on. If your entity has only PYNCL, transfer the amounts at A7 to A12 in part   D to 3G to 3L in step   D1 and then go to step   D2 . If your entity has only capital losses transferred in, go to step   D3 .

You can choose the order in which you deduct your entity's current year capital losses (at D in part   B) from the current year capital gains (at A7 to A12 ).

Generally, if your entity is entitled to the small business CGT concessions, it is better to reduce the non-active asset capital gains first. Within the non-active and active categories you usually get the greatest benefit by reducing:

1. capital gains calculated using the 'other' method, then
2. capital gains calculated using the indexation method, then
3. capital gains calculated using the discount method.

At 3A to 3F , write the amounts of current year capital losses deducted in the order you have chosen with the total at H . At 3G to 3L , write the capital gains after applying (deducting) the current year capital losses.

You can carry forward net capital losses other than from collectables ( D in part   B minus H ) to reduce capital gains in later income years.

When you have completed step D1, transfer the amount of net capital losses ( D minus H ) to I UNCL from other CGT assets in part   I.

S tep D2 Apply any prior year net capital losses, other than those from collectables, against current year capital gains remaining after step D1

Prior year net capital losses are the unapplied net capital losses carried forward from earlier income years.

If your entity has prior year net capital losses (other than from collectables) that can be deducted, they must be deducted here.

You cannot choose to defer to a later income year any amount that can be deducted this income year.

Does your entity have any current year capital gain remaining?

No	If your entity has PYNCL, complete 4A , 4B and 4C and transfer the amount at 4C to I in part   I. Go to part   E .
Yes	Does your entity have any PYNCL, other than collectables?
	No	If your entity is a company with capital losses transferred in, go to step   D3 . Otherwise, transfer 3G to 3L in step   D1 to A to F in part   E and continue from part   F .
	Yes	Read on.

Reduce the prior year net capital losses at 4A by any adjustment for commercial debts forgiven at 4B . For more information on commercial debts forgiven, see your entity's tax return instructions.

Again, you can deduct prior year net capital losses from any remaining capital gains in the way that produces the best result. See discussion for step   D1 . However, you must deduct them in the order in which they were made, for example, you must deduct a 1995-96 income year capital loss before a 1998-99 income year capital loss.

At 4D to 4I , write the amounts of prior year net capital losses you have chosen to be deducted and the total at L. At 4J to 4O , write the capital gains after you have applied the prior year net capital losses.

You can carry forward any unapplied prior year net capital losses ( 4C minus L ) to reduce the capital gains in later income years. There is no time limit on how long you can carry forward these losses.

When you have completed step D2, transfer the amount of unapplied prior year net capital losses ( 4C minus L ) to I   UNCL from other CGT assets in part   I (together with any net capital losses at step   D1).

If your entity is a company with capital losses transferred in, go to step   D3 .

Otherwise, transfer the remaining capital gain amounts at 4J to 4O to A to F in part   E.

S tep D3 Companies only - apply any capital losses transferred in

Only follow this step if your entity is a group company with capital losses transferred in.<//p>

• both companies are members of the same wholly owned group
  
   
• one of the companies is
  • an Australian branch of a foreign bank, or
  • an Australian permanent establishment of a foreign financial entity if the capital loss is for an income year commencing on or after 26   June 2005
• the other company is
  • the head company of a consolidated group or multiple entry consolidated (MEC) group, or
  • not a member of a consolidatable group, and
• further conditions in Subdivision 170-A of the Income Tax Assessment Act 1997 are satisfied.

You need to apply the capital losses transferred in to your entity in the order they were received. Your entity must have enough capital gains to absorb the capital losses transferred in.

When you have completed step D3, transfer the amount of CYCG remaining after applying CYCL, PYNCL ( 4J to 4O in step D2) and capital losses transferred in to A to F in part   E.

P art E Current year capital gains after applying capital losses

In part E, write your entity's current year capital gains reduced by current year capital losses, prior year net capital losses and capital losses transferred in.

P art F CGT discount on capital gains

In part F, apply the CGT discount.

Does your entity have a capital gain at Capital gains - discount method (B or E) in part   E?

Yes	Read on.
No	Go to part   G .

CGT discount Companies are not eligible for the CGT discount unless they are life insurance companies or friendly societies that carry on life insurance business. These companies may be entitled to the CGT discount for their complying superannuation business.

Next, calculate the CGT discount that applies to the capital gains at B and E in part   E. The CGT discount percentage is:

• 33   1/3% for complying superannuation entities, or
• 50% for individuals and trusts.

Write the amount of the CGT discount at J and K in part   F.

Write the amount of your remaining capital gains at 6A to 6F in part   F.

Pa rt G Small business CGT concessions

In part G, apply the small business CGT concessions your entity is claiming. For more information about the small business CGT concessions, see the publication Capital gains tax (CGT) concessions for small business - overview .

Is your entity eligible for the small business CGT concessions?

Yes	Read on.
No	Go to part H

Write:

• the amount of your entity's small business 50% active asset reduction (SBAAR) at L to N
• the amount of your entity's small business retirement exemption (SBRE) at O to Q , and
• the amount of your entity's small business rollover (SBRO) at R to T .

Write the total amount of the small business CGT concessions your entity is claiming at 7A to 7D of part   G.

P art H Net capital gain calculation

In part H, write the amount of your entity's net capital gain.

Your entity's net capital gain is the amount remaining after applying any current year capital losses, net capital losses from prior income years, capital losses transferred in, the CGT discount and any applicable CGT small business concessions.

Include a net capital gain as assessable income on your entity's tax return at the relevant item. See step   3 .

Part I Unapplied net capital losses carried forward to later income years

In part I, write any unapplied net capital losses (UNCL) your entity is carrying forward. These losses will be available to reduce any capital gains in later income years.

Does your entity have any unapplied net capital losses?

Yes	Read on.
No	You have completed the worksheet.

At H and I, write details of any capital losses that are unapplied (that is, that have not been used).

At H , write the unapplied capital losses from collectables only. This is the sum of:

• any current year capital losses from collectables that you have not used to reduce capital gains from collectables this income year (that is, deduct 1D in step   A2.1 from C4 in part   A2), and
• any prior year net capital losses from collectables that you have not used to reduce capital gains from collectables this income year (that is, deduct 2G from 2C in step   A2.2).

At I, write all of the other capital losses, that is, the sum of:

• the current year capital losses that you have not used to reduce capital gains (that is, deduct H in step   D1 from D in part   B), and
• the prior year net capital losses that you have not used to reduce capital gains (that is, deduct L in step   D2 from 4C in step   D2).

At V , write the total of the amounts at H and I .

The amounts at H and I are the unapplied net capital losses available to be carried forward and used to reduce your capital gains in later income years.

You can only use unapplied net capital losses from collectables to reduce capital gains from collectables in later income years.

Step 3 How to complete the capital gains item on your entity's tax return

In the earlier steps, you calculated your capital gain or capital loss for each CGT event, then worked out your net capital gain or net capital loss.

If your entity made a capital gain or capital loss during the income year:

• print Y (for Yes) at G Did you have a capital gains tax event during the year? at the capital gains item on your entity's tax return
• transfer the amount at G in part   H of your entity's CGT summary worksheet to A Net capital gain on your entity's tax return, and
• add the amounts, if any, at H and I in part   I of your entity's CGT summary worksheet and write the total amount at Losses information , V Net capital losses carried forward to later income years on your entity's tax return.

If you are an individual completing your Tax return for individuals (supplementary section) 2011 or a registered tax agent completing a tax return on behalf of an individual:

• print Y (for Yes) at G Did you have a capital gains tax event during the year? item 18   Capital gains on your tax return (supplementary section)
  
   
• transfer the amount at Total CYCG , part   A3 of your CGT summary worksheet to H Total current year capital gains item 18 Capital gains on your tax return (supplementary section)
  
   
• transfer the amount at G , part   H of your CGT summary worksheet to A Net capital gain item 18 Capital gains on your tax return (supplementary section), and
  
   
• add the amounts, if any, at H and I in part   I of your CGT summary worksheet and write the total at V Net capital losses carried forward to later income years item 18 Capital gains on your tax return (supplementary section).

Step 4 How to complete the CGT schedule

Your entity must complete a CGT schedule for the 2010-11 income year if:

• the total current year capital gains are greater than $10,000, or
• the total current year capital losses are greater than $10,000.

Consolidated groups If a group consolidates during the income year, the head company must lodge a CGT schedule if the total capital gains or total capital losses that it makes (as head company of the consolidated group and while not a member of a consolidated group) are greater than $10,000. An entity that has joined a consolidated group or groups during the income year as a subsidiary member must lodge a CGT schedule covering any periods of non-membership if the entity satisfies the requirements for lodgment of that schedule.

If your entity is required to complete a CGT schedule, attach it to your entity's 2011 tax return. You should lodge only one CGT schedule with your entity's tax return.

If you are lodging a paper tax return and CGT schedule, print and complete the CGT sch edule provided. To get copies of the preprinted schedule, phone our Publications Distribution Service on 1300   720   092 .

Print your entity's tax file number (TFN), name and Australian business number in the boxes provided. The CGT schedule must be signed in the same way that the 2011 tax return is signed.

Part A Capital gains from CGT assets and CGT events

1. Transfer the amounts from A to H and from M to U on your CGT summary worksheet to the corresponding labels in part   A of the CGT schedule.
2. Transfer the amounts at J , K and L on your CGT summary worksheet (after step   A2.2) to the corresponding labels in part   A of the CGT schedule.

Add the totals V , W and X .

Part B Current year capital losses (CYCL) from CGT assets and CGT events - other than capital losses from collectables

Transfer the amounts at A , T , B , U , C and D on your CGT summary worksheet to the corresponding labels in part   B of the CGT schedule.

Now go straight to part   D (there is no part   C in this worksheet).

Part D Applying capital losses against current year capital gains

From step D1 of the CGT summary worksheet:

1. Add the amounts at columns 3A and 3D and transfer the total to E in part   D of the CGT schedule.
2. Add the amounts at columns 3B and 3E and transfer the total to F in part   D of the CGT schedule.
3. Add the amounts at columns 3C and 3F and transfer the total to G in part   D of the CGT schedule.
4. Transfer the amount at Total CYCL applied amount H to H in part   D of the CGT schedule.

From step D2 of the CGT summary worksheet:

1. Add the amounts at columns 4D and 4G and transfer the total to I in part   D of the CGT schedule.
2. Add the amounts at columns 4E and 4H and transfer the total to J in part   D of the CGT schedule.
3. Add the amounts at columns 4F and 4I and transfer the total to K in part   D of the CGT schedule.
4. Transfer the amount at Total PYNCL applied L to L in part   D of the CGT schedule.

From step D3 of the CGT summary worksheet:

1. Add the amounts at columns 5A and 5D and transfer the total to M in part   D of the CGT schedule.
2. Add the amounts at columns 5B and 5E and transfer the total to N in part   D of the CGT schedule.
3. Add the amounts at columns 5C and 5F and transfer the total to O in part   D of the CGT schedule.
4. Transfer the amount at Total capital losses transferred in P to P in part   D of the CGT schedule.

Add the totals H , L and P .

Part E Current year capital gains (CYCG) after applying capital losses

Transfer the amounts at A , B , C , D , E and F of the CGT summary worksheet to the corresponding labels in part   E of the CGT schedule.

Add the totals G , H and I .

Part F Applying the CGT discount on capital gains

Transfer the amounts at J and K of the CGT summary worksheet to the corresponding labels in part   F of the CGT schedule.

Part G Applying the CGT concessions for small business

Transfer the amounts at rows L to N , O to Q and R to T of the CGT summary worksheet to the corresponding labels in part   G of the CGT schedule.

Part H Calculating net capital gain

Follow the instructions on the schedule to calculate G in part   H of the CGT schedule.

Part I Unapplied net capital losses (UNCL) carried forward to later income years

Transfer the amounts at H and I of the CGT summary worksheet to the corresponding labels in part   I of the CGT schedule.

Part J Small business 15-year exemption

Write the total amount of any capital gains disregarded by the small business 15-year exemption (do not apply the CGT discount) at J in part   J of the CGT schedule.

Print in the box at K the code from the list below that best describes the CGT asset or CGT event from which your entity made the capital gain. If your entity made capital gains from more than one CGT asset or CGT event, select the code which best describes the type of CGT asset or CGT event that produced the largest amount of capital gain.

CGT asset or CGT event code:

• S shares
• U units in unit trusts
• R real estate
• G goodwill
• O other CGT assets or CGT events not listed above

Part K Scrip-for-scrip rollover for exchanging taxpayer

During the income year, did your entity choose a scrip-for-scrip rollover when an arrangement was made to exchange original interests for replacement interests?

Original interests are shares or units or other interests (or an option, right or similar interest in a company or trust), while replacement interests are similar interests in another company or trust.

Print X in the appropriate box at A .

If you printed Y for Yes :

• write at B the amount of the cost base for all of the original interests exchanged (regardless of whether or not full rollover was available)
• write at C the total of the market value of the replacement interests acquired
• write at D the total of the amount of cash and other considerations received. Do not include any amount already included at C .

Part L Scrip-for-scrip rollover for acquiring entity - to be completed by companies and trusts only

Was the company or trust an 'acquiring entity' during the income year under an arrangement for which original interest holders qualified for scrip-for-scrip rollover?

Print X in the appropriate box at E .

If you printed Y for Yes , provide the information requested below for the arrangement. If interests were acquired in more than one original entity, write at F the number of original entities subject to such arrangements and provide the information requested below for the arrangement involving the greatest cost base for the interests acquired.

Write at G the TFN for the original entity.

Write at H the number of shares, units or other interests issued in exchange for the shares or units or other interests acquired in the original entity.

Write at I the number of options, rights or similar interests issued in exchange for the options, rights or similar interests acquired in the other entity.

Write at J the amount of other considerations (including cash) given to acquire the shares, units or other interests, options, rights or similar interests in the original entity.

Write at K the total of the first element of the cost bases of the shares, units or other interests, options, rights or similar interests acquired in the original entity as a result of the arrangement.

Did the company that issued replacement interests or the trustee of the trust, jointly with a significant or common stakeholder, choose to receive a rollover?

Print Y for Yes or N for No at L .

If the answer at L is Yes , write at M the total of the first element of the cost bases of the shares, or units or other interests, or options, rights or similar interests in the original entity (original interests) acquired directly from significant and common stakeholders for the arrangement, or issued by the original entity to the company or trust and attributable to original interests of significant and common stakeholders that were cancelled under the arrangement.

Part M Did you have an employee share scheme in place at any time during the year - to be completed by companies only

Did the company have an employee share scheme in place at any time during the income year?

Print X in the appropriate box at N .

Part N Same majority underlying ownership and pre-CGT assets - Division   149 - to be completed by companies only

Was there no change in the majority underlying interests of any assets to which Division   149 applies?

Declare whether or not there was a change in the majority underlying ownership in any assets the company acquired before 20   September 1985. If there was a change, answer N for No. In this case, the cost base of the relevant assets is reset under Division   149.

If there was no change, answer yes .

Print X in the appropriate box at O .

After following all these steps, you have completed your entity's CGT schedule.

Remember to lodge the CGT schedule with your entity's tax return.

Do not lodge your worksheets. Keep these with your own records.

ATO references:
NO NAT 4151