This guide will help you complete item 18 Capital gains on your Tax return for individuals (supplementary section) 2010 (NAT 2679).

If you sold or otherwise disposed of shares, or units in a unit trust (including a managed fund), in 2009-10 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 2009-10, 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.

Small business CGT concessions



This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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If you are involved in the sale of shares or units for a small business, you may wish to read Capital gains tax (CGT) concessions for small business - overview.

Investments in foreign hybrids

A foreign hybrid is an entity that was taxed in Australia as a company but taxed overseas as a partnership. This can include a limited partnership, a limited liability partnership and a United States limited liability company.

If you have an investment in a foreign hybrid (referred to as being a member of a foreign hybrid), you are treated for Australian tax purposes as having an interest in each asset of the partnership.

As a consequence, any capital gain or capital loss made with respect to a foreign hybrid or its assets is taken to be made by the member. More information is available on our website.

General value shifting regime

If you own shares in a company or units (or other fixed interests) in a trust and value has been shifted in or out of your shares or units, you may be affected by value shifting rules. Generally, the rules only affect individuals who control the company or trust, or individuals who are related to individuals or entities that control the company or trust.

Further Information

For more information, see General value shifting regime: who it affects.

End of further information

Forestry managed investment schemes

There are specific CGT rules where secondary investors or subsequent participants hold forestry managed investment scheme (FMIS) interests on capital account. These rules apply to FMIS interests sold or disposed of in the 2007-08 income year and later income years.

For more information see the Guide to capital gains tax 2010.


Demutualisation of friendly societies

The tax law was changed on 18 September 2009 to provide relief from CGT for policy holders of friendly societies (including joint health and life insurers) except where the policy holders received an amount of money. This change in law applies from 1 July 2008.

If you are a policyholder of a friendly society that demutualised in 2008-09 and:

  • you received an amount of money in 2008-09 or 2009-10 as a result of the demutualisation, and
  • you followed the advice we provided on our website about the tax treatment of that money

then you might need to review your 2008-09 tax return.

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Last modified: 29 Jun 2010QC 22892