Show download pdf controls
  • myTax 2022 Capital gains or losses

    Complete this section if a capital gains tax (CGT) event happened in 2021–22. You may have made a capital gain, capital loss, or you may be entitled to apply an exemption or rollover.

    On this page

    Things to know

    For most CGT events, you make a:

    • capital gain if the amount of money and property you received, or were entitled to receive, from the CGT event was more than the cost base of your asset; you may then have to pay tax on your capital gain
    • capital loss if the amount of money and property you received, or were entitled to receive, from the CGT event was less than the reduced cost base of your asset.

    Don't show at this section a 'listed investment company capital gain amount' included in a dividend paid by a listed investment company. See Dividend deductions.

    Did you have a capital gains tax event in 2021–22?

    There is a wide range of CGT events. The most common CGT event happens when you sell or give away a CGT asset, such as:

    • real estate, including your family home, holiday home, investment property, hobby farm or vacant block of land
    • shares and similar investments
    • units in a unit trust or managed investment fund
    • forestry managed investment scheme interests (as a subsequent participant)
    • crypto assets
    • collectables, for example, jewellery
    • personal use assets.

    Other CGT events occur. Examples are:

    • an asset you owned was lost or destroyed
    • you received an amount for entering into an agreement, for example, you agreed not to work in a particular industry for a set time period
    • you entered a conservation covenant over land that you owned
    • you received a non-assessable payment from a trust or company.

    You may also have made a capital gain if:

    • you were a beneficiary of, or had money invested in, a trust (including a managed investment fund), and
    • the trust made a capital gain.

    You can't deduct a capital loss from your assessable income, but in most cases, it can be used to reduce a capital gain you made in 2021–22. If you made no capital gain in 2021–22, defer the capital loss until you make a capital gain.

    Generally, you disregard a capital gain or capital loss on:

    • disposal of your main residence, if you were an Australian resident for tax purposes when you signed the sale contract
    • assets you acquired before 20 September 1985
    • cars, motorcycles and similar vehicles
    • personal use assets such as boats, furniture, electrical goods and household items used or kept mainly for personal use or enjoyment which you acquired for $10,000 or less. If you acquired it   
      • for more than $10,000, you disregard only capital losses
      • for $10,000 or less, you disregard both capital gains and capital losses 
    • collectables, for example an antique or jewellery, which you acquired for $500 or less
    • compensation you received for personal injury
    • the exchange of shares or units you owned in a company or trust under a takeover, if certain conditions were met
    • shares in a company, or interests in a trust, where there was a demerger and certain conditions were met
    • disposal of shares in a pooled development fund
    • shares in a qualifying early stage innovation company (ESIC) held for less than 10 years and, in the case of capital gains, the shares were also held for at least 12 months; see Tax incentives for early stage investors
    • disposal of certain investments by        
      • a venture capital limited partnership
      • an early stage venture capital limited partnership
      • an Australian venture capital fund of funds 
    • disposal of an asset to which the small business 15-year exemption applies
    • transfer of an asset where the Small business restructure roll-over is available (gains or losses are deferred until the asset is disposed of).

    If you have received or are entitled to a share of the income of a trust or managed fund, there may be CGT consequences depending on the component(s) of the distribution.

    If you are a foreign resident beneficiary of a trust, and if 'managed-investment trust withholding tax' is payable on an amount that you received from that trust (other than in the capacity of a trustee), don't include any part of that amount on your tax return.

    If you are not sure whether a CGT event happened in 2021–22, see 'Appendix 1, Summary of CGT events' in Guide to capital gains tax.

    Real estate

    Most Real estate is subject to CGT. Generally you disregard a capital gain or loss on Your main residence (your home) if you were an Australian resident for tax purposes when you signed the sale contract.

    When 2 people separate or divorce, assets transferred between them usually qualify for the Relationship breakdown rollover.

    If you have provided affordable rental housing to people earning low to moderate income you may be entitled to Tax incentives for investments in affordable housing.

    Granny flat arrangements

    From 1 July 2021 no CGT event arises to eligible individuals on certain granny flat arrangements if the arrangement satisfies the requirements of the provisions. A granny flat arrangement is a written agreement that gives an eligible person the right to occupy a property for life.

    The CGT exemption will apply to the creation, variation or termination of a granny flat arrangement. To learn more, visit Granny flat arrangements and CGT.

    Inheritance

    CGT applies when you dispose of a CGT asset that you inherited. See Inherited assets and capital gains tax for more information on the tax treatment and capital gains exemptions of inherited assets.

    Employee share schemes

    If you have an interest in an employee share scheme (ESS), CGT may apply. See ESS and capital gains tax for more information on the CGT consequences for shares acquired under an employee share scheme.

    Foreign and Norfolk Island residents

    For Norfolk Island residents, CGT may apply to assets acquired after 23 October 2015. CGT remains payable on Australian mainland assets.

    If you are a foreign resident see Main residence exemption for foreign residents for information on whether this exemption applies to you.

    The 50% CGT discount is not available to foreign and temporary resident individuals. You can only apply the discount to part of your capital gain if either of the following happened:

    • you acquired the asset on or before 8 May 2012
    • you had a period of Australian residency after 8 May 2012.

    Under the Foreign resident capital gains withholding rules, foreign residents that dispose of certain Australian assets may have an amount withheld from the sale proceeds they receive. See Capital gains withholding: Impacts on foreign and Australian residents for more information on amounts withheld from sale proceeds.

    Video tutorials

    In myTax capital gains or losses digital resources, we’ve developed a series of videos designed to help you complete the capital gains section of myTax.

    Completing this section

    Before completing this section, you may wish to read What you may need.

    We have shown any:

    • capital gains you have at the Managed fund distributions section
    • shares or real estate disposal information provided to us    
      • we may provide a link to additional shares and units records unable to be displayed in myTax. This link will open a new window. When you have finished reviewing those records go back to myTax, which will be open in another tab or window
      • if shares or units amounts differ to your own records, check if the difference is the brokerage fee. Visit shares or units capital proceeds data to learn more. Note that the amounts shown have not been apportioned by your ownership percentage 
    • capital loss carried forward from your 2020–21 tax return, and
    • indicator that you may have a CGT event for a crypto asset.

    Check for any other CGT event information not pre-filled and include it all when calculating your capital gain or loss.

    If you have an exemption or rollover that may allow you to reduce, defer or disregard your capital gain or capital loss, see CGT events and applying an exemption or rollover.

    If you have a capital gain in the Managed fund distributions section, see Capital gains and managed funds.

    To personalise your return to show capital gains or losses, at Personalise return select:

    • You had Australian interest, or other Australian income or losses from investments or property
    • Capital gains or losses that are not from a managed fund distribution.

    To show your capital gains or losses, at Prepare return select 'Add/Edit' at the Capital gains or losses banner.

    At the Capital gains or losses heading:

    1. Work out the capital gains or loss amounts to show at this section using the CGT record keeping tool, or manually calculate your capital gains or loss.
      The CGT record keeping tool can help work out basic gain or loss events. CGT pre-fill data shown in myTax will be transferred to the tool.
      If you do use the CGT record keeping tool, go to step 5.
      Otherwise, if you manually calculate your capital gain or loss, read on.
    2. Enter your Total current year capital gains.
      This is calculated by adding all your capital gains for 2021–22 (except those that are disregarded). Do not apply capital losses, any CGT discounts or the small business concessions yet (other than the 15-year exemption).
    3. Enter your Net capital gain.
      This is the amount remaining after applying to your 2021–22 capital gains whichever of the following items are relevant to you (in the order listed)        
      1. 2021–22 capital losses
      2. unapplied net capital losses from earlier years
      3. any CGT discounts (including any CGT discount for affordable housing)
      4. the small business 50% active asset reduction
      5. the small business retirement exemption or rollover.

    If you have capital losses to apply, you will find it to your advantage to apply them first to any capital gains that do not qualify for the CGT discount.

    If you have a discount capital gain, you may not be entitled to the maximum CGT discount percentage of 50% if you are an individual (including a beneficiary of a trust) and:

    • a foreign or temporary resident, or
    • an Australian resident with a period of non-residency after 8 May 2012.

    For more information, see CGT discount for foreign residents.

    If the total amount remaining is positive or zero, enter the amount.
    If you have a negative amount, enter zero. You have net capital losses to carry forward to later income years.

    You can only use capital losses from collectables to reduce capital gains from collectables. You must disregard capital losses from personal use assets.

    1. Enter your Net capital loss carried forward to later income years.
      If you have a negative amount from your calculation of Net capital gain at step 3, you have a net capital loss to carry forward to later income years. You can use net capital losses from earlier years that you have not yet used to reduce a capital gain in later years.
    2. Answer the question Have you applied an exemption, rollover or additional discount?
      If No, go to step 7.
      If Yes, go to step 6.
    3. Select the Capital gains tax exemption, rollover or additional discount type code.
      For more information about CGT exemptions, rollovers or additional discount, see Guide to capital gains tax.
    4. Enter the amount of the credit you are entitled to claim under the foreign resident capital gains withholding rules. For more information, see Capital gains withholding: Impacts on foreign and Australian residents.
    5. Complete the Capital gains tax schedule if:        
      1. your current year capital gain or loss is more than $10,000, or
      2. you select the Capital gains tax exemption, rollover or additional discount type code of 'W: Affordable housing discount'. 
    6. Select Save and continue when you have completed the Capital gains or losses section.

    CGT events and applying an exemption or rollover

    There are exemptions and rollovers that may allow you to reduce, defer or disregard your capital gain or capital loss. For more information about CGT exemptions and rollovers, see Guide to capital gains tax.

    How you complete this section will depend on your circumstances:

    • If you applied a full exemption or rollover to disregard or defer capital gains or capital losses, when completing the Capital gains or losses section:    
      • Do not complete Total current year capital gains and Net capital gain, and
      • Go to step 5 in Completing this section.
      • For example, if you applied full exemption as you are continuing to treat your former home as your main residence, in myTax you would:    
        • at step 5, answer Yes to the question Have you applied an exemption, rollover or additional discount?
        • at step 6 to select ‘I: Main residence exemption’ at Capital gains tax exemption, rollover or additional discount type code. 
    • If you applied a partial exemption or rollover to disregard or defer some capital gains or capital losses, when completing the Capital gains or losses section:    
      • Add up all your capital gains for 2021–22 (except those that are disregarded) to work out your Total current year capital gains. Do not apply capital losses, any CGT discounts or the small business concessions (other than the 15-year exemption) to these capital gains.
      • Work out your net capital gain or net capital loss.
      • Go to step 1 in Completing this section. 

    Capital gains and managed funds

    How you complete this section will depend on your circumstances:

    • If your only capital gains are from a managed fund and, at the Managed fund distributions section, your share of the current year capital gains is $10,000 or less, you do not need to complete the Capital gains or losses section.
    • If your only capital gains are from a managed fund and, at the Managed fund distributions section, your share of the current year capital gains is more than $10,000:    
      • myTax will prompt you to complete the Capital gains or losses section  
      • myTax will complete Total current year capital gains and Net capital gain in the Capital gains or losses section from the information shown in the Managed fund distributions section, and
      • you will need to complete the Capital gains tax schedule
      • Go to step 5 in Completing this section.
    • If you have capital gains from a managed fund and a separate CGT tax event during the year, when completing the Capital gains or losses section:    
      • the capital gains amounts shown in the Managed fund distributions section will be automatically carried over to the Capital gains or losses section for you to review, and
      • you will need to ensure that all your capital gains, including those from managed funds, are included in what you show at Total current year capital gains and Net capital gain
      • Go to step 1 in Completing this section.
    • If you have capital gains from a managed fund, no other CGT event during the year but have a carried forward capital loss from a prior year:    
      • myTax will prompt you to complete Capital gains or losses section
      • the capital gains amounts shown in the Managed fund distributions section will be automatically carried over to the Capital gains or losses section for you to review, and
      • you will need to ensure that your capital gains from managed funds are included in what you show at Total current year capital gains and Net capital gain
      • Go to step 1 in Completing this section.

    CGT exemption, roll-over or additional discount type codes

    Using the table below, choose the exemption, rollover or additional discount code that best describes your circumstances. If more than one code applies, choose the code that applies to the largest amount of capital gain.

    Exemption, rollover or additional discount codes

    Code

    CGT exemption, roll-over or additional discount

    A

    Small business active asset reduction (subdivision 152-C)

    B

    Small business retirement exemption (Subdivision 152-D)

    C

    Small business roll-over (Subdivision 152-E)

    D

    Small business 15-year exemption (Subdivision152-B)

    E

    Foreign resident CGT exemption (Division 855)

    F

    Scrip for scrip roll-over (Subdivision 124-M)

    I

    Main residence exemption (Subdivision 118-B)

    J

    Capital gains disregarded as a result of the sale of a pre-CGT asset

    K

    Disposal or creation of assets in a wholly owned company (Division 122)

    L

    Replacement asset roll-overs (Division 124)

    M

    Exchange of shares or units (Subdivision 124-E)

    N

    Exchange of rights or options (Subdivision 124-F)

    O

    Exchange of shares in one company for shares in another company (Subdivision 124-G)

    P

    Exchange of units in a unit trust for shares in a company (subdivision 124-H)

    R

    Demerger roll-over (Subdivision 125-B)

    S

    Same asset roll-overs (Division 126)

    T

    Small business restructure roll-over (Subdivision 328-G)

    U

    Early stage investor (Subdivision 360-A)

    V

    Venture capital investment (Subdivision 118-F)

    W

    Affordable housing discount

    X

    Other exemptions and rollovers

    Shares or units capital proceeds data

    Some market participants (for example, brokers) may report capital proceeds data to you differently to how they report it to the ATO:

    • the sale amount (capital proceeds) reported to you is reduced by the brokerage fees incurred
    • the capital proceeds reported to the ATO is not reduced by brokerage fees.

    While both amounts reported are correct, the different amounts may be confusing and lead to incorrect calculation and reporting of the capital gain.

    The table below shows an example comparison of the amounts reported.

    Company code

    Pre-filled capital proceeds amount (provided by reporter to ATO and pre-filled)

    Sale amount (provided by reporter to you)

    Difference

    XYZ

    $3,500.97

    $3,481.02

    $19.95

    ZYX

    $4,341.80

    $4,321.85

    $19.95

    Check your amounts in your pre-filling service for accuracy. Shares and units pre-filling is informational only and entering differing amounts into your tax return will not prevent you from lodging.

      Last modified: 15 Jul 2022QC 69357