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Step 2 – How to complete the CGT summary worksheet

Last updated 3 March 2016

The CGT summary worksheet (PDF 50KB)This link will download a file is used to calculate your entity's net capital gain or net capital loss for the 2003–04 income year. It also provides the information you need to complete the capital gains item on your entity's tax return and, if required, the CGT schedule.

You should include on this worksheet any capital gain your entity is entitled to as a distribution from a trust.

The CGT summary worksheet (PDF 205KB)This link will download a file is designed for entities that make capital gains or capital losses during the income year. However, you may also find it useful if you are an individual (including a partner in a partnership) who has more complex CGT affairs.

The CGT summary worksheet (PDF 205KB)This link will download a file differentiates between capital gains from active assets and non-active assets. Generally, an active asset is a business asset the entity owns – for example, goodwill of a business.

A share and an interest in a trust can also be active assets if certain conditions are met.

There are four small business CGT concessions that may apply to capital gains from active assets:

  • the small business 15-year exemption: this exemption, subject to certain conditions being satisfied, means a capital gain is totally disregarded if your small business entity has continuously owned the CGT asset for at least 15 years, and
    • you are 55 years old or over and retiring, or
    • you are permanently incapacitated
  • the small business 50% active asset reduction: this concession provides a 50% reduction of a capital gain for an active asset
  • the small business retirement exemption: this allows capital gains for active assets (up to a lifetime limit of $500,000) to be disregarded if the conditions are satisfied. If you are under 55 years old and are eligible for this exemption, the amount must be paid into a superannuation (or similar) fund
  • the small business rollover: this enables you to defer a capital gain if a replacement asset is acquired and other conditions are satisfied.

Active assets

Remember that at Active assets in the CGT summary worksheet (and the CGT schedule), you should only include a capital gain from an active asset that qualifies for one or more of the following three small business CGT concessions:

  • small business 50% active asset reduction
  • small business retirement exemption, or
  • small business rollover.

If the asset does not qualify for one or more of these three concessions, include the capital gain at Non-active assets.

Limit on value of assets

The small business CGT concessions are not available if the net value of the assets of your entity and related entities just before the CGT event exceeds $5 million. If your entity is not entitled to the small business concessions, include the capital gain at Non-active assets.

Life insurance companies

Life insurance companies, including friendly societies that conduct life insurance business, need to complete two CGT summary worksheets – one for each class of income they derived (superannuation class and ordinary class income). Capital losses from one class of income can only be applied against capital gains from that class of income. Combine the details from both summary worksheets onto one CGT schedule, if it is required.

The parts in this step relate to the parts of the CGT summary worksheet (PDF 205KB)This link will download a file. Work through each relevant part to complete your worksheet.