ato logo
Search Suggestion:

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

Last updated 20 April 2020

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

Introduction

Steps you need to take

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

Step 2 - How to complete the CGT summary worksheet

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

Step 4 - How to complete the CGT schedule

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:

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 2005-06 income year to be $10,000 or less?

Yes

Work through steps 1 and 3.

No

Work through steps 1 to 4. Step 4 will show you how to complete the Capital gains tax (CGT) schedule 2006

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:

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

The labels to complete at these items 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 years at the Losses information item on your entity's tax return.

The relevant item number will be:

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 with this guide are the:

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 Capital gains tax (CGT) schedule 2006 if this is required.

CGT schedule

Your entity must complete this schedule for the 2005-06 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 2006, you must attach it to your entity's 2006 tax return.

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 on our website or phone the Tax Reform Infoline on 13 24 78.



QC18504