There are three methods that are used to calculate a capital gain: the indexation method, the discount method and the 'other' method. There is only one way to calculate a capital loss.
The three methods of calculating capital gains are summarised and compared in table 2 Capital gain calculation methods. They are explained in more detail in the following pages. In some cases, you may be able to choose either the discount method or the indexation method to calculate your capital gain. In these cases, you use the method that gives you the better result.
The CGT summary worksheet for 2008-09 tax returns (PDF, 210KB) shows the three methods of calculating a capital gain. You are not obliged to use this worksheet, but you may find it helps you calculate your capital gain or capital loss for each CGT event.