A fund makes a capital gain or capital loss if certain events or transactions happen. These are called CGT events. CGT events usually happen to a fund’s CGT assets, such as upon the disposal of a CGT asset by the fund. However, some CGT events relate directly to capital receipts.
If the fund ceases to hold or to use a depreciating asset that was used for both taxable and non-taxable purposes, a CGT event may happen in respect of the asset. A capital gain or capital loss may arise to the extent that the asset was used for a non-taxable purpose. For more information, see the Guide to depreciating assets 2015 (NAT 1996).
A capital gain or capital loss is disregarded in certain circumstances. For example, capital gains or capital losses arising from a CGT event happening in relation to segregated current pension assets of a complying superannuation entity are disregarded.
Find out more
For more information about CGT events see the Guide to capital gains tax 2015, which includes:
- a capital gain or capital loss worksheet for calculating a capital gain or capital loss for each CGT event
- a CGT summary worksheet for calculating the fund’s net capital gain or capital loss
- a Capital gains tax (CGT) schedule 2015 (NAT 3423).
The Guide to capital gains tax 2015 also explains special CGT rules that apply to foreign residents and trustees of foreign trusts.
The worksheets will help you calculate the net capital gain or capital loss for the income year and complete the CGT questions on the fund tax return. You do not have to complete the worksheets, but if you do, do not attach them to the fund tax return; keep them with the fund’s tax records.
Print X in the Yes box at G if:
- the fund had a CGT event happen during 2014–15
- the fund received a share of net income from a trust that includes a capital gain, or
- the fund is a subsequent participant in a forestry managed investment scheme and had a CGT event as a result of a harvest or sale of its interest in the scheme. See CGT information included at X Forestry managed investment scheme income item 10.
Otherwise, print X in the No box.
If you select Yes you must complete the Capital gains tax (CGT) schedule 2015 (CGT schedule) and attach it to the fund tax return if:
- total current year capital gains are greater than $10,000, or
- total current year capital losses are greater than $10,000.