Part C – Instructions for companies, trusts and funds (entities)
This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attention
Are you an individual?
If you are completing a tax return on behalf of an individual (rather than an entity) and you do not wish to use the worksheets, 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 2020–21 to be $10,000 or less?
Work through steps 1–3 below. These will enable you to complete the capital gains items on your entity’s tax return.
Work through steps 1–4 below. Step 4 will show you how to complete the CGT schedule.
You must complete step 4 if you are a superannuation fund (or pooled superannuation trust) recognising a capital gain in 2020–21 that was deferred in 2016–17 under the transitional CGT relief.
An attribution managed investment trust (AMIT) with multiple classes must apply the $10,000 total capital gain or loss threshold to each class separately.
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:
- Company tax return 2021 item 7
- Trust tax return 2021 item 21
- Fund income tax return 2021 item 10
- Self-managed superannuation fund annual return 2021 item 11.
Funds include superannuation funds, approved deposit funds and pooled superannuation trusts.
A self-managed superannuation fund is a fund with fewer than five members that meets the requirements of section 17A of the Superannuation Industry (Supervision) Act 1993.
The capital gains labels to complete on your entity’s tax return are:
- G Did you have a capital gains tax event during the year?
- M Have you applied an exemption or rollover?
- A Net capital gain
You may also need to complete V Net capital losses carried forward to later income years at Losses information on your entity’s tax return.
The relevant item number on each tax return is:
- Company tax return 2021 item 13
- Trust tax return 2021 item 27
- Fund income tax return 2021 item 13
- Self-managed superannuation fund annual return 2021 item 14.
You may also need to complete a Consolidated groups losses schedule 2021 or a Losses schedule 2021. See the applicable schedule instructions for full details of who must complete the schedule.
The worksheets provided in 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, if required, a CGT schedule.
Your entity must complete this schedule for 2020–21 if:
- the total current year capital gains are greater than $10,000, or
- the total current year capital losses are greater than $10,000, or
- you have chosen to apply the transitional CGT relief in 2016–17 and a realisation event occurred in 2020–21. For more information regarding transitional CGT relief, see LCR 2016/8 Superannuation reform: transitional CGT relief for complying superannuation funds and pooled superannuation trusts.
If your entity is required to complete a CGT schedule, you must attach it to your entity’s 2021 tax return.
If a group consolidated during 2020–21, 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 2020–21 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.
Attribution managed investment trusts (AMIT)
If an AMIT chooses multi-class treatment, complete a separate CGT schedule for each class with a total capital gain or loss greater than $10,000.
AMITs that do not choose multi-class treatment must lodge a CGT schedule if the entity has a total capital gain or loss greater the $10,000.