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  • How to work out your capital gain or capital loss

    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

    This section explains how to work out each capital gain or capital loss you made during 2017–18.

    It does not explain how to work out your net capital gain or net capital losses carried forward to later income years. If you are completing the Tax return for individuals (supplementary section) 2018 (NAT 2679) and want more information on how to calculate your net capital gain for 2017–18 or net capital losses carried forward to later income years (including how to deduct any unapplied net capital losses from earlier years), see part B of this guide. For more information about companies, trusts and funds or about completing the CGT summary worksheet, see part C of this guide.

    Three methods of calculating capital gains

    There are three methods that are used to calculate a capital gain: the indexation method, the discount method and the 'other' method. There is only one way to calculate a capital loss.

    The three methods of calculating capital gains are summarised and compared in table 2 Capital gain calculation methods. They are explained in more detail in the following pages. In some cases, you may be able to choose either the discount method or the indexation method to calculate your capital gain. In these cases, you use the method that gives you the better result.

    The CGT summary worksheet (PDF, 170KB)This link will download a file shows the three methods of calculating a capital gain. You are not obliged to use this worksheet, but you may find it helps you calculate your capital gain or capital loss for each CGT event.

    Last modified: 22 Jun 2018QC 55220