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Step 8-Working out your net capital gain-A item 17

Last updated 5 October 2009

The amount of your remaining capital gains becomes your net capital gain, which you show at A. It represents the amount you have shown at H reduced in accordance with:

  • step 5-current year capital losses
  • step 6-prior year net capital losses and/ or
  • step 7-discount amount.

If you have capital losses that have reduced your capital gains to zero, print '0' at A. If you have any capital losses remaining after reducing your capital gains, you can carry these forward to future income years (see step 9). Again do not include losses from:

  • assets you acquired before 20 September 1985
  • personal use assets
  • collectables or
  • other losses that are disregarded.
Start of example

Example: Net capital gain-A item 17

Kathleen has deducted her current year capital losses from her capital gains in the order that gives her the best result. She deducted her $600 capital loss from her $520 capital gain (as this capital gain is not eligible for the CGT discount because she owned the shares for less than 12 months) and the remainder from her other $3,000 capital gain:

$520 − $600 = -$80

$3,000 − $80 = $2,920

Kathleen has deducted her prior year capital losses in the order that gives her the best result. As she only had capital gains calculated using the discount method left, the $400 prior year capital loss was deducted from the remaining $2,920:

$2,920 − $400 = $2,520

Kathleen applies the CGT discount by multiplying her capital gain by 50 per cent:

$2,520 × 50% = $1,260

Kathleen shows $1,260 at A Net capital gain.

End of example