Guide to capital gains tax 2005-06

Step 9 - Working out your net capital gain

The amount of your remaining capital gains becomes your net capital gain, which you show at A.

It represents the amount you have shown at H reduced in accordance with:

• step 5 - current year capital losses
• step 6 - unapplied net capital losses from earlier years
• step 7 - CGT discount, and/or
• step 8 - small business CGT concessions.

If you have capital losses that have reduced your capital gains to zero, do not put anything at A. If you have any capital losses remaining after reducing your capital gains, you can carry these forward to future income years (see step 10). Again do not include losses from:

• assets you acquired before 20 September 1985
• personal use assets
• collectables, or
• other losses that are disregarded.

Example: Net capital gain - A

Kathleen shows $1,260 at A Net capital gain item 17 on her tax return (supplementary section) - or item 9 if she uses the tax return for retirees.

Sections within Part B - Completing the capital gains section of your tax return

• Read this first
• Introduction
• Step 1 - Types of CGT assets and CGT events
• Step 2 - Calculating your current year capital gain or capital loss for each CGT asset or CGT event
• Step 3 - Total current year capital gains
• Step 4 - Capital losses
• Step 5 - Applying current year capital losses
• Step 6 - Applying net capital losses from earlier years
• Step 7 - Applying the CGT discount
• Step 8 - Applying the small business CGT concessions
• Step 9 - Working out your net capital gain
• Step 10 - Capital losses carried forward to later income years