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

Last updated 3 March 2016

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 2003–04 tax return - these are your working papers and should be kept with your entity's tax records.

Remember that when you are using the worksheet:

  • 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 four categories
    • shares and units in unit trusts
    • real estate
    • other CGT assets (including personal use assets) and any other CGT events
    • collectables
     

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). The capital gain or capital loss is calculated having regard 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.

  • If a capital gain was made, you calculate it using
    • the indexation method (see note 2 to the worksheet) for capital gains made on CGT assets acquired before a certain time (11.45am by legal time in the ACT on 21 September 1999) and owned for at least 12 months, or
    • the discount method (see note 3 to the worksheet) for assets owned for at least 12 months and for which you are not using the indexation method, or
    • the '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 Explanation of terms.

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 (PDF 205KB)This link will download a file, 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 gain or capital loss worksheet (PDF 50KB)This link will download a file to the CGT summary worksheet (PDF 205KB)This link will download a file. Transfer a capital gain according to the method you used to calculate it and the type of asset that gave rise to it.

Notes to Capital gain or capital loss worksheet:

2. Indexation method

For CGT assets acquired before 11.45am (by legal time in the ACT) on 21 September 1999, the indexation of the cost base of an asset is frozen as at 30 September 1999. Individuals, trusts and superannuation entities can choose to use either the cost base indexed, frozen as at 30 September 1999, or the CGT discount.

For CGT assets acquired before 11.45am (by legal time in the ACT) on 21 September 1999, you have the option of choosing the CGT discount or calculating the capital gain using indexation frozen as at 30 September 1999. Calculate your capital gain under each option to determine the best result in your particular circumstances.

3 Discount method

If a CGT event happens in relation to a CGT asset after 11.45am (by legal time in the ACT) on 21 September 1999 and the asset was acquired at least 12 months before the CGT event, you may be entitled to discount the capital gain after applying capital losses. The discount percentage for an individual or trust is 50% and for a complying superannuation entity it is 33⅓%. Companies (other than those life insurance companies and friendly societies which carry on life insurance business that are entitled to the CGT discount in respect of their complying superannuation business) are not eligible for the CGT discount. Current year capital losses and then prior year net capital losses are applied against current year capital gains before applying the CGT discount. If any capital gains qualify for the CGT small business concessions, those concessions are then applied to each capital gain.

For CGT assets acquired before 11.45am (by legal time in the ACT) on 21 September 1999, you have the option of choosing the CGT discount or calculating the capital gain using indexation frozen as at 30 September 1999. Calculate your capital gain under each option to determine the best result in your particular circumstances.

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