The Guide to capital gains tax 2006 explains how capital gains tax works and will help you calculate your net capital gain or net capital loss for 2005-06 so you can meet your capital gains tax obligations. There are worksheets in this guide to help you do this.
Who should use this guide?
An individual, company, trust or superannuation fund can use this guide to work out their capital gains tax.
A company, trust or superannuation fund that is required to complete and lodge a Capital gains tax (CGT) schedule 2006 should use the schedule included. Part C explains when a schedule must be lodged.
If you have a small business, you should get the publication Guide to capital gains tax concessions for small business (NAT 8384-6.2006).
Individuals may prefer to use the shorter, simpler Personal investors guide to capital gains tax 2006 (NAT 4152-6.2006) if, during 2005-06, they only:
- sold some shares
- sold some units in a managed fund, and/or
- received a distribution of a capital gain from a managed fund.
For CGT tools and calculators, including for demergers, visit www.ato.gov.au
This guide does not deal fully with the capital gains tax position of:
- a company that is the head company of a consolidated group - the rules that apply to members of a consolidated group modify the application of the capital gains tax rules. For more information about the consolidation rules or if you have technical tax enquiries, visit our website or phone the Tax Reform Infoline on 13 24 78
- an individual or entity whose gains or losses are included as part of its income under other provisions of the tax law - for example, from carrying on a business of share trading (see Shares, units and similar investments)
- an individual or entity that is not an Australian resident for tax purposes.
Publications and services
To find out how to get a publication referred to in this guide and for information about our other services, see More information.
Some of the terms used in this guide may be new to you. Specific terms are explained in the Definitions section.
This guide will help you work out whether any of the assets you own (or may own in the future), and any events that happen to you are subject to capital gains tax (CGT). Where they are, it tells you how to work out your capital gain or capital loss. It also covers what records you need to keep.