What this guide is designed to do
This guide is designed for a personal investor who has made a capital gain or capital loss from shares, units or managed funds in 2002-03. It explains the capital gains tax consequences of:
- the sale or gift (or other disposal) of shares or units
- the receipt of distributions of capital gains from managed funds, and
- the receipt of non-assessable payments from companies or managed funds.
It will help you complete:
- item 17 Capital gains on your 2003 tax return for individuals (supplementary section) shown below, or
- item 9 if you use the 2003 tax return for retirees. Note: You cannot use the 2003 tax return for retirees if you had a distribution from a managed fund during the year.
If you sold or otherwise disposed of shares or units in a unit trust (including a managed fund) in 2002-03, you should read part A of this guide, then work through part B.
If you received a distribution of a capital gain from a managed fund in 2002-03, you should read part A of this guide, then work through part C.
Managed funds include property trusts, share trusts, equity trusts, growth trusts, imputation trusts and balanced trusts.
What this guide is not designed to do
This guide does not apply to gains or losses included as part of your income under other provisions of the tax law-for example, if you are a share trader. In addition, it does not explain more complex issues relating to shares (including employee shares), convertible notes and units. Nor does it apply to shares and units owned by companies, trusts and superannuation funds.
Also, this guide does not cover your capital gains tax consequences when you sell other assets such as:
- a rental property
- collectables (for example, jewellery, art, antiques and collections), and
- assets for personal use (for example, a boat you use for recreation).
For these, refer to the Guide to capital gains tax.
Small business concessions
If you are involved in the sale of shares or units in relation to a small business, you may wish to get the publication Guide to capital gains tax concessions for small business.
New terms
We may use some terms that are not familiar to you. These words are printed in red the first time they are used and are explained in Explanation of terms.
If this guide does not fully cover your circumstances, please:
- visit our website at www.ato.gov.au
- get either of the publications Guide to capital gains tax or You and your shares.
- contact the Australian Taxation Office, or
- seek advice from a professional tax adviser.