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  • Chapter C3:  Worked examples for managed fund distributions

    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

    The following worked examples take the steps explained in chapter C1 and put them into different scenarios to demonstrate how they work.

    If you have received a distribution from a managed fund, you may be able to apply one or more of these examples to your circumstances to help you work out your capital gains tax for 2000-01 and complete item 17.

    Example 1

    Bob has received a non assessable amount

    Bob owns units in OZ Investments Fund which distributed income to him for the year ending 30 June 2001. The fund gave him a statement showing he had received $550 assessable income, including the following capital gains:

    • $100 using the discount method (grossed-up amount $200)
    • $75 using the indexation method, and
    • $28 using the 'other' method.
     

    These capital gains add up to $203.

    The statement shows Bob's distribution did not include a tax free amount but it did include:

    • $105 tax deferred amount.
     

    From his records, Bob knows that the cost base and reduced cost base of his units are $1200 and $1050 respectively.

    Bob has no other capital gains or losses for the 2000- 01 income year.

    Bob follows these steps to work out the amounts to show on his tax return.

    Bob works out how much of the fund distribution to show as income by deducting the total of the capital gains on his statement from the total assessable income distributed to him:

    $550 - $203 = $347.

    Bob shows the $347 at item 12-Partnerships and trusts.

    As Bob has a capital gain which the fund reduced under the CGT discount of 50% ($100), he includes the grossed up amount ($200) in his total current year capital gain.

    So Bob adds the grossed up amount to his indexed method and 'other' capital gains to work out his total current year capital gains:

    $200 + $75 + $28 = $303

    As Bob has no other capital gains or losses, his net capital gain is the amount of capital gain included in his distribution from the fund ($203).

    Bob completes item 17 as follows:

    Label G Yes

    Net capital gain-Label A $203

    Total year capital gains-Label H

    $303

    Last modified: 06 Oct 2009QC 16182