Introduction
This guide will help you complete item 18 Capital gains on your Tax return for individuals (supplementary section) 2009 (NAT 2679).
If you sold or otherwise disposed of shares, or units in a unit trust (including a managed fund), in 2008–09, read part A of this guide, then work through part B.
If you received a distribution of a capital gain from a managed fund in 2008–09, read part A of this guide, then work through part C.
Managed funds include property trusts, share trusts, equity trusts, growth trusts, imputation trusts and balanced trusts.
Small business CGT concessions
If you are involved in the sale of shares or units for a small business, you may wish to read Capital gains tax (CGT) concessions for small business – overview.
Investments in foreign hybrids
A foreign hybrid is an entity that was taxed in Australia as a company but taxed overseas as a partnership. This can include a limited partnership, a limited liability partnership and a United States limited liability company.
If you have an investment in a foreign hybrid (referred to as being a member of a foreign hybrid), you are treated for Australian tax purposes as having an interest in each asset of the partnership.
As a consequence, any capital gain or capital loss made with respect to a foreign hybrid or its assets is taken to be made by the member. More information is available on our website.
General value shifting regime
If you own shares in a company or units (or other fixed interests) in a trust and value has been shifted in or out of your shares or units, you may be affected by value shifting rules. Generally, the rules only affect individuals who control the company or trust, or individuals who are related to individuals or entities that control the company or trust.
Forestry managed investment schemes
There are specific CGT rules where secondary investors or subsequent participants hold forestry managed investment scheme (FMIS) interests on capital account. These rules apply to FMIS interests sold or disposed of in the 2007–08 income year and later income years.
Announced changes
Demutualisation of friendly societies
On 24 October 2008, the Assistant Treasurer announced changes to the tax law to provide relief from CGT for policy holders of friendly societies, including joint health and life insurers, which demutualise to for-profit entities.
The announcement proposed that the changes to the law will take effect from 1 July 2008.
Last Modified: Wednesday, 21 October 2009
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