• Step 1: Additional tax from the removal of CGT averaging (gross adjustment amount)

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    For the 1999-2000 income year, calculate any additional tax liability incurred because of the removal of CGT averaging. To do this:

    • Recalculate your taxable income, including your notional net capital gain (which you worked out as a step in calculating the amount at label Z) instead of your actual net capital gain (the amount at label W).
    • Work out your basic income tax liability (tax apart from the Medicare levy and rebates/ tax offsets) on this notional taxable income, without CGT averaging.
    • Work out your basic income tax liability on this notional taxable income as if CGT averaging still applied.

    Any excess of the first amount of tax over the second is the additional tax from the removal of CGT averaging (the gross adjustment amount) .

    Last modified: 18 Sep 2009QC 18323