18 Capital gains 2025

Things you need to know

Declare at this question CGT events that happen in 2024–25.

If foreign tax is paid on a foreign gain of a capital nature, read Part H in question 20 Foreign source income and foreign assets or property 2025 to work out the amount of foreign income tax offset you can claim. Show the foreign income tax offset at question 20 – label O.

Don't show at this question a 'listed investment company capital gain amount' from a dividend paid by a listed investment company. For more information, see question D8 Dividend deductions 2025.

You may have made a capital gain, or capital loss, if a CGT event happens in 2024–25. For most CGT events, you make a:

• capital gain if the amount of money and property you receive, or are entitled to receive, from the CGT event is more than the cost base of your asset; you may then have to pay tax on your capital gain
• capital loss if the amount of money and property you receive, or are entitled to receive, from the CGT event is less than the reduced cost base of your asset.

If you're a Norfolk Island resident, CGT may apply to assets acquired after 23 October 2015. CGT remains payable on Australian mainland assets.

If you're entitled to one or more distributions from trusts, you must complete and attach a Trust distributions and your CGT position to your tax return.

Keeping records from the start

You must keep records of every act, transaction, event or circumstance that may be relevant to working out your capital gain or capital loss. This is regardless of whether the CGT event has already happened, is about to happen or may happen in the future.

You must keep these records for 5 years from the time when no CGT event or further CGT event can happen. The records for these CGT events may be relevant to working out whether you make a capital gain or capital loss from the CGT event.

Types of CGT events

There are a wide range of CGT events that can happen. The most common CGT event happens when you sell a CGT asset, such as:

• real estate, including your family home, holiday home, investment property, hobby farm or vacant block of land
• shares
• units in a unit trust or managed investment fund
• forestry managed investment scheme interests (as a subsequent participant)
• crypto assets
• collectables – for example, jewellery
• personal use assets.

Other CGT events that happen include events, such as:

• an asset you own is lost or destroyed
• you receive an amount for entering into an agreement – for example, you agreed not to work in a particular industry for a set period of time
• you enter into a conservation covenant over land that you own
• you receive a non-assessable payment from a trust or company
• when you stop being an Australian resident for tax purposes.

You may also make a capital gain if both:

• you're a beneficiary of, or have money invested in, a trust (including a managed investment fund)
• the trust makes a capital gain.

If you're not sure whether a CGT event happens in 2024–25, see Appendix 1: Summary of CGT events in Guide to capital gains tax 2025.

Types of capital gains and capital losses

You can't deduct a capital loss from your assessable income, but in most cases, it can be used to reduce a capital gain you make in 2024–25. If you make no capital gain in 2024–25, defer the capital loss until you make a capital gain, see Step 3.

Generally, you disregard a capital gain or capital loss on:

• disposal of your main residence, if you're an Australian resident for tax purposes when you sign the sale contract
• assets you acquired before 20 September 1985
• cars, motorcycles and similar vehicles
• personal use assets such as boats, furniture, electrical goods and household items you use or keep mainly for personal use or enjoyment which you acquire for $10,000 or less – if you acquire it for
  • more than $10,000, you disregard only capital losses
  • $10,000 or less, you disregard both capital gains and capital losses
• collectables – for example, an antique or jewellery, which you acquire for $500 or less
• compensation you receive for personal injury
• the exchange of shares or units you own in a company or trust under a takeover, if certain conditions are met
• shares in a company, or interests in a trust, where there is a demerger and certain conditions are met
• disposal of shares in a pooled development fund
• shares in a qualifying early stage innovation company (ESIC) held for less than 10 years and, in the case of capital gains, the shares are also held for at least 12 months, see Tax incentives for early stage investors
• disposal of certain investments by
  • a venture capital limited partnership
  • an early stage venture capital limited partnership
  • an Australian venture capital fund of funds
• disposal of an asset to which the small business 15-year exemption applies
• transfer of an asset where the small business restructure roll-over is available (gains or losses are deferred until the asset is disposed of).

If you're a foreign resident beneficiary of a trust, and if 'managed-investment trust withholding tax' is payable on an amount that you receive from that trust (other than in the capacity of a trustee), don't include any part of that amount in your tax return.

Did a capital gains tax event happen in 2024–25?

• No – Print X in the No box at question 18 – label G if you don't have a capital gain or your capital gains and losses are deferred.
  Go to Step 4.
• Yes – Print X in the Yes box at question 18 – label G if you have a capital gain or a capital loss that isn't deferred.

Disposal of shares, stapled securities or rights

You may reduce the amount of your capital gain if you acquire shares, stapled securities or rights under an employee share scheme.

Share of income of a trust or managed fund

Managed funds (unit trusts) include:

• exchange traded funds (ETFs)
• property trusts
• share trusts
• equity trusts
• growth trusts
• imputation trusts
• balanced trusts.

Other trusts include:

• discretionary trusts
• family trusts
• hybrid trusts
• business trusts.

Distributions from trusts and managed funds can include 2 components that have CGT consequences:

• distributions of trust income where the trust's net income for tax purposes includes a net capital gain
• distributions of non-assessable amounts.

You need to know whether your distribution includes these 2 amounts. To find out, check the statement (distribution statement, year-end or annual statement) from the trust. The statement should also show which method the trust uses to calculate the capital gains in the trust's net capital gain. There are 3 methods of calculating capital gains:

• indexation
• discount
• 'other'.

You must use the same method as the trust to calculate your own net capital gain.

Trustees and fund managers may use different terms to describe the calculation methods they use, and they may refer to capital gains they calculate using the indexation and 'other' methods as 'non-discount gains'. If you're in doubt, check with your trust or fund manager.

Your distribution statement may include amounts of:

• NCMI (Non-concessional MIT income) capital gains
• Excluded from NCMI capital gains.

Include both these amounts in the calculation of the net capital gain at question 18 – label A.

Capital gain or capital loss on shares

You may make a capital gain or capital loss by selling or giving away your shares, including by selling them to the company under a share buy-back arrangement. Even if you don't pay for your shares, for example, you receive them under a demutualisation, you may make a capital gain or capital loss when you sell or give them away.

If you use dividends to acquire additional shares in a company (for example, through a dividend reinvestment plan) the additional shares are subject to CGT if you sell them or give them away.

There are other ways of making a capital gain or capital loss on shares, such as:

• If you hold shares in a company and during 2024–25, a liquidator or administrator declared the shares worthless, you may claim a capital loss equal to the reduced cost base of the shares (otherwise you may have to wait until the company is dissolved to claim the capital loss).
• If you receive a return of capital amount (a non-assessable payment) you may have to reduce the cost base and reduced cost base of your shares. If the amount of the non-assessable payment is more than the cost base of the shares, the difference is a capital gain.

Capital gain or capital loss on crypto assets

A CGT event occurs when you dispose of your crypto assets. You may make a capital gain or a capital loss if one of the following occurs:

• you sell, trade, gift, exchange or swap your crypto assets
• you use it to obtain goods or services
• you acquire crypto assets as an investment and dispose of it.

If your disposal of the crypto asset is part of a business you carry on, or part of a commercial transaction that you enter into with an intention of making a profit or gain, the profits you make on the disposal will generally be assessable as ordinary income and not as a capital gain.

Property you inherited

Capital gains tax applies when you dispose of a CGT asset that you inherit. However, if you inherit real estate, you may not have to pay CGT if you sell it within 2 years of the person's death. For example, if the property is the deceased person's main residence just before they die and they aren't:

• renting out any of the property
• using any of the property for business purposes
• a foreign resident.

If you inherit an Australian residential property from a deceased person who has been a foreign resident for 6 years or less at the time of their death, the main residence exemption that the deceased accrued for the dwelling is available to you as the beneficiary. The main residence exemption means you may not pay CGT on any capital gain made after you sell or dispose of the property, depending on the use of the property by both you and the deceased.

If you inherit an Australian residential property from a deceased person who has been a foreign resident for more than 6 years at the time of their death, any main residence exemption that the deceased person may have accrued for that dwelling isn't available to you. This means you may have to pay CGT when you sell or dispose of the property.

If you inherit an Australian residential property and you have been a foreign resident for more than 6 years when you sell or dispose of the property, you can't claim the main residence exemption for your ownership period.

Your home may be subject to capital gains tax

Under the 'main residence exemption', you generally don't have to pay CGT on the disposal of your main residence if you're an Australian resident for tax purposes at the time of the disposal. However, you may have to pay tax on some of your capital gain if:

• the property isn't your main residence for the whole period you own it
• you use the property, or part of it, to produce assessable income (for example, you rent it out)
• the land area is greater than 2 hectares.

The creation, variation or termination of a granny flat arrangement from 1 July 2021 shouldn't affect the main residence exemption.

Asset transfer on marriage or relationship breakdown

If you transfer an asset to your spouse as a result of a marriage or relationship breakdown, in certain cases, there are no immediate CGT consequences. In these cases, there is automatic rollover (you can't choose whether or not it applies).

However, the person who receives the asset (the transferee spouse) will usually make a capital gain or capital loss when they dispose of the asset. If you're the transferee spouse and the rollover applies, you may need to get cost base information from your former spouse or their tax adviser.

Your spouse includes another person who:

• you're in a relationship with that is registered under a prescribed state or territory law
• although not legally married to you, live with you on a genuine domestic basis in a relationship as a couple.

Tax incentives for investments in affordable housing

Australian resident individuals who provide affordable rental housing to people earning low to moderate income are allowed an additional affordable housing capital gains discount of up to 10%. To qualify for this additional discount, you must provide qualifying affordable rental housing through a registered community housing provider:

• on or after 1 January 2018 for a period, or periods, totalling at least 3 years (1,095 days), which may be aggregate usage over different periods
• either directly, or through an interposed entity from a trust or managed investment trust - the interposed entity or trust may be a trust or partnership, other than a public unit trust or super fund.

The number of days you may provide affordable housing before 1 January 2018 won't be counted.

This additional capital gains discount is relevant for CGT events occurring on or after 30 December 2020 as this is the first date that you may be able to satisfy the 3-year period to qualify for the additional discount.

The overall effect of this additional affordable housing capital gains discount is that the total capital gains discount is now increased from a maximum of 50% to a maximum of 60% for some qualifying investors.

If you invested directly in affordable housing, you should receive an annual affordable housing certificate from your community housing provider showing the number of days your investment property is used to provide affordable housing. If you invested in affordable housing through a trust or managed investment trust, you may need to contact the trustee to get the number of affordable housing days in order to work out your additional affordable housing capital gains discount percentage.

Granny flat arrangements

From 1 July 2021 no CGT event arises to eligible individuals on certain granny flat arrangements if the arrangement satisfies the requirements of the provisions. A granny flat arrangement is a written agreement that gives an eligible person the right to occupy a property for life.

The CGT exemption will apply to the creation, variation or termination of a granny flat arrangement.

An arrangement is a granny flat arrangement if:

• the owner or owners of the property are individuals
• one or more eligible people have an eligible granny flat interest in the property
• the owners and the people with the granny flat interest enter into a written and binding granny flat arrangement (this arrangement must not be commercial in nature).

A granny flat interest is where an individual has a right to occupy a property for life under a granny flat arrangement. A granny flat interest can be held in any type of property, provided it's a dwelling. This includes the owner's main residence or a separate property. It isn't restricted to what is commonly referred to as a 'granny flat'. The interest may be in part or all of the property.

A granny flat arrangement can be entered into between the property owner or owners and any eligible party (meaning family or friends). At the time the eligible party enters into the arrangement they must either:

• be age pension ageExternal Link
• require assistance for day-to-day activities because of a disability and be likely to require assistance for at least 12 months after that time.

Foreign residents

Foreign residents who are individuals are subject to CGT on:

• direct interests in real estate located in Australia
• an interest in an entity where they and their associates hold 10% or more of the entity and the value of their interest is principally attributable to Australian real estate
• an asset they use in carrying on a business through a permanent establishment in Australia
• an option or right to acquire one of the above.

If you're a foreign resident at the time you dispose of your property in Australia, you're not entitled to the CGT main residence exemption (regardless of the period the property is your main residence in Australia and the 6-year absence rule).

If you acquired the property at or after 7:30 pm (AEST) on 9 May 2017, you're entitled to the CGT main residence exemption if certain life events occur within a continuous period of 6 years of you becoming a foreign resident for tax purposes.

For more information, see Main residence exemption for foreign residents.

Foreign resident capital gains withholding (FRCGW)

Under the FRCGW rules, foreign residents that dispose of certain Australian assets may have an amount withheld from the sale proceeds they receive.

Similarly, Australian resident vendors could have amounts withheld from their sale proceeds if they either dispose of:

• Australian real property, without providing the purchaser with an ATO-issued clearance certificate
• an indirect Australian real property interest without providing the purchaser with a valid vendor declaration (resident).

If you have amounts withheld from you during the income year, you're entitled to claim a credit for those amounts paid to the Commissioner by the withholder.

For more information, see Foreign resident capital gains withholding.

Temporary residents

Temporary residents are subject to CGT in the same way as foreign residents.

For the definition of a temporary resident and details of the exemption, see Tax-free income for temporary residents in Amounts that you don't pay tax on 2025.

There are special rules for shares and rights acquired under an employee share scheme.

What you need to answer this question

You'll need:

• Details of the amount of any unapplied net capital losses from earlier years (this is the amount at label V at the capital gains question in your last year's tax return).
• Documents showing the date you acquire any asset to which a CGT event happens, the date of the CGT event, and the date and amounts of any expenditure you incur that form part of the cost base and reduced cost base of the asset or are taken into account in working out your capital gain or capital loss.
• Year-end, annual or distribution statements from trusts with net capital gains from which you receive or are entitled to receive
  • distributions of income
  • distributions of non-assessable amounts.

You may also need one or more of the following publications to complete this question. They explain the 3 methods available to calculate a capital gain.

• Capital gains tax explains what a capital gain is, how it applies, what assets to include, the exceptions and exemptions.
• Guide to capital gains tax 2025 explains how CGT works and will help you to calculate your net capital gain or net capital loss. It covers CGT issues such as the sale of a rental property, vacant land, a holiday home, collectables (for example, jewellery), personal use assets (for example, a boat you use for recreation), and real estate, shares and units you inherit or get from the breakdown of your marriage or relationship.
• CGT concessions eligibility overview explains what concessions are available to small businesses.
• Personal investors guide to capital gains tax 2025 is shorter and simpler than Guide to capital gains tax 2025, it covers
  • the sale, gift or other disposal of shares and units
  • distribution of capital gains from managed funds
  • non-assessable payments from companies and managed funds.

The Personal investors guide to capital gains tax 2025 doesn't cover other CGT events, or the CGT consequences for bonus shares, shares acquired under an employee share scheme, bonus units, rights and options, and shares and units where a takeover or demerger has occurs, see Guide to capital gains tax 2025.

CGT worksheets

Use the worksheets and follow the steps to help you complete question 18.

For most individuals, the Capital gain or capital loss worksheet 2025 is all you'll need to work out what to include at question 18. Make copies of the worksheet if you need more than one. If you need help completing the Capital gain or capital loss worksheet, see Step 1 in Capital gains tax schedule and instructions 2025 (ignore the word ‘entity’).

How to work out your capital gain or capital loss explains how to calculate a capital gain or capital loss for each CGT event or asset using examples and the Capital gain or capital loss worksheet 2025.

If you have a number of the Capital gain or capital loss worksheets because several CGT events happened, you may wish to use the CGT summary worksheet for tax returns 2025 to help you calculate your net capital gain or net capital loss. Read Steps 2 and 3 in Capital gains tax schedule and instructions 2025 (ignoring the word ‘entity’) to find out how to complete the summary worksheet. Then complete question 18 in your supplementary tax return.

Step 1 Types of CGT assets and CGT events

Certain capital gains and capital losses (that is, those from collectables and personal use assets) are treated differently when calculating your net capital gain or net capital loss. For explanations of these assets, see Does capital gains tax apply to you? Disregard capital losses from personal use assets and don't take them into account when working out your net capital gain. You can only use capital losses from collectables to reduce capital gains from collectables.

You need to separate the records of your CGT events into the following 3 categories:

• those relating to collectables (for example, jewellery)
• those relating to personal use assets (for example, a boat you use for recreation)
• other CGT assets or CGT events, including distributions of capital gains from managed funds.

Step 2 Exemptions, rollovers and the additional affordable housing discount

There are exemptions and rollovers that may allow you to reduce, defer or disregard your capital gain or capital loss. There is also an additional discount on capital gains for resident individuals who invest in affordable housing.

If you applied an exemption or rollover to disregard, defer a capital gain or capital loss or you qualified for and applied the additional affordable housing discount to reduce a capital gain, write X in the Yes box at question 18 Capital gains – label M in your supplementary tax return. Write X in the No box if you didn't.

Write in the code box at label M the code from the following list that represents the CGT exemption, rollover or additional discount that produced the largest amount of capital gain or capital loss deferred or disregarded.

CGT exemption and rollover codes:

• A Small business active asset reduction
• B Small business retirement exemption
• C Small business rollover
• D Small business 15–year exemption
• E Foreign resident CGT exemption
• F Scrip for scrip rollover
• I Main residence exemption
• J Capital gains disregarded as a result of the sale of a pre-CGT asset
• K Disposal or creation of assets in a wholly-owned company
• L Replacement asset rollovers
• M Exchange of shares or units
• N Exchange of rights or options
• O Exchange of shares in one company for shares in another company
• P Exchange of units in a unit trust for shares in a company
• R Demerger rollover
• S Same asset rollovers
• T Small business restructure rollover
• U Early stage investor
• V Venture capital investment
• W Affordable housing discount
• X Other exemptions and rollovers.

Step 3 Calculating your current year capital gain or loss for each CGT asset or event

Calculate whether you have made a capital gain or capital loss for each CGT event that has happened during 2024–25. The Capital gain or capital loss worksheet 2025 can help you work this out. Don't include capital gains that are disregarded, deferred or reduced, or capital losses that are disregarded; see Exemptions and rollovers.

Include the relevant capital gains at this step if you're a small business entity and qualify for one or more of the following small business CGT concessions:

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

Don't include capital gains to which the small business 15-year exemption applies, only include these in question 8 of the CGT schedule.

You apply the concessions to the amount of any relevant capital gains remaining after step 8.

In calculating your capital gain, you will use one of the following 3 methods for each asset:

• indexation method
• discount method
• 'other' method.

For a full explanation of these methods and how to use them to calculate your capital gain or capital loss for each CGT event, see How to work out your capital gain or capital loss.

For a CGT event that happens after 11:45 am AEST on 21 September 1999 to a CGT asset that you acquired at or before that time, you can choose to use either the indexation or the discount method to calculate your capital gain if you have owned the asset for at least 12 months. If you bought and sold your asset within 12 months, you must use the 'other' method to calculate your capital gain.

If you use the discount method, don't apply the discount percentage until you have applied current year capital losses and unapplied net capital losses from earlier years.

You also need to work out the amount of any capital gains that you're taken to have made as part of a distribution from a trust. You must use the same method the trustee used in calculating the amount of the capital gain. For more information, see Trust distributions and your CGT position.

Concessions that may apply

There are special rules if a trust’s net capital gain was reduced by the CGT discount or by applying the small business 50% active asset reduction, or both. The trust should advise you if it is claiming either (or both) of these concessions as you will need to adjust the amount of the net capital gain to include in your total capital gains. As the beneficiary of the capital gain distribution, you do this by grossing up the net capital gain by the amount that relates to the discount applied, for example, if the trust's net capital gain was reduced by the CGT discount (50%), you adjust the amount of the net capital gain by multiplying it by 2. You include this grossed up amount in your total capital gains.

For more information, see Trust distributions and your CGT position.

Step 4 Total current year capital gains

If you don't have any capital gains from collectables, add up all your capital gains from step 3 and write this amount at question 18 – label H Total current year capital gains in your supplementary tax return.

If you have a capital gain from collectables, deduct any capital losses from collectables (including unapplied net capital losses from earlier years from collectables). Don't deduct capital losses from other capital gains at this stage.

Any capital gain remaining is added to all your other capital gains from step 3. Write the total amount at question 18 – label H in your supplementary tax return.

If you received (or are entitled to receive) a distribution from a trust that includes a net capital gain, you also need to include this amount here in your total capital gains. Ensure that you gross up the net capital gain amount by the amount that relates to the CGT discount applied by the trust. Don't include this amount as a distribution from the trust at question 13 Partnerships and trusts in your supplementary tax return.

If your capital gains from collectables were reduced to zero when you applied your losses from collectables, and you still have capital losses from collectables remaining, then make a note of this amount.

This capital loss can be carried forward to future years, see Step 11, and will be recorded at question 18 – label V Net capital losses carried forward to later income years in your supplementary tax return.

Step 5 Capital losses

If you have no current year capital losses or unapplied net capital losses from earlier years, go to Step 8. Otherwise, read on.

From your Capital gain or capital loss worksheet, add up all your capital losses for 2024–25 and make a note of this amount. Remember that you don't include capital losses:

• from personal use assets
• from collectables
• that are disregarded (for example, those from assets acquired before 20 September 1985), see Exemptions and rollovers.

If you have a current year capital loss, go to Step 6.

If you have only unapplied net capital losses from earlier years and no current year capital losses, go to Step 7.

Step 6 Applying current year capital losses

You must apply your current year capital losses from step 5 against (that is, deducted from) any capital gains you made during the year to determine your net capital gain or net capital loss.

When applying your current year capital losses, you can choose the method that gives you the best result to reduce your current year capital gains. While you will need to consider your own situation, for most people the order that usually gives the greatest benefit and the smallest net capital gain is to apply the capital losses against capital gains calculated using the:

• 'other' method
• indexation method
• discount method.

Apply your current year capital losses against your current year capital gains and make a note of any capital gains remaining. If you have current year capital losses that can be applied to 2024–25 they must be applied here. You can't choose to defer to a later year any amount that can be applied this year.

If your total capital losses for the year are more than your total capital gains, you will need to keep a record of the difference. This amount (your net capital loss) is carried over and used to reduce your future capital gains. There is no time limit on how long you can carry forward your net capital loss. If you have reduced your capital gains to zero, don't put anything at label A Net capital gain.

Step 7 Applying net capital losses from earlier years

If you don't have any unapplied net capital losses from earlier years, go to Step 8. Otherwise, read on.

You can further reduce your current year capital gains by your unapplied net capital losses from earlier years.

You must apply unapplied net capital losses from earlier years against capital gains in the order you made them. For example, use net capital losses from 1998–99 before you use any net capital losses from 1999–2000. You can then apply these capital losses against your capital gains in the manner that gives you the best result. Again, for most people the order that usually gives the greatest benefit and the smallest net capital gain is to apply the capital losses against capital gains calculated using the:

• 'other' method
• indexation method
• discount method.

Reduce your remaining current year capital gains by any unapplied net capital losses from earlier years and make a note of any capital gains remaining. If you have unapplied net capital losses from earlier years that can be applied to 2024–25, they must be applied here. You can't choose to defer to a later income year any amount that can be applied to 2024–25.

You need to keep a record of any unapplied net capital losses from earlier years. You can continue to carry forward these amounts and use them to reduce your future capital gains. There is no time limit on how long you can carry forward your net capital losses. You record these at label V Net capital losses carried forward to later income years, see Step 11. If you have reduced your capital gains to zero, don't put anything at label A Net capital gain.

Step 8 Applying the CGT discount

You can now reduce any remaining current year capital gains calculated using the discount method by the discount percentage (50% for individuals plus any additional affordable housing capital gain discount for eligible investors).

You can't apply the discount to capital gains calculated using the indexation method or the 'other' method.

Step 9 Applying the small business CGT concessions

If you're a small business entity, you may qualify for one or more of the following small business CGT concessions:

50% active asset reduction

small business rollover

small business retirement exemption.

You can apply these concessions now to the amount of any relevant capital gains remaining after step 8. You may apply the concessions to capital gains calculated using any of the 3 methods. The small business 15-year exemption isn't applied at this step as the capital gain to which this exemption applies is excluded under step 3.

For more information, see Small business CGT concessions.

Step 10 Working out your net capital gain

The amount of your remaining capital gains becomes your net capital gain, which you write at question 18 – label A Net capital gain in your supplementary tax return.

It represents the amount you have written at label H Total current year capital gains reduced in accordance with:

• Step 6 Applying current year capital losses
• Step 7 Applying net capital losses from earlier years
• Step 8 Applying the CGT discount (including any additional affordable housing capital gain discount)
• Step 9 Applying the small business CGT concessions.

If you have capital losses that have reduced your capital gains to zero, don't put anything at label A Net capital gain. If you have any capital losses remaining after reducing your capital gains, you can carry these forward to future income years, see Step 11. Again, don't include losses from:

• assets you acquired before 20 September 1985
• personal use assets
• other losses that are disregarded.

Step 11 Capital losses carried forward to later income years

Your net capital losses amount to be carried forward is the total of any:

• unapplied current year net capital loss from step 6
• unapplied net capital losses from earlier years from step 7
• capital losses from collectables to be applied in future income years from step 4.

You will need to keep a separate record of unapplied net capital losses from collectables because you can only use these to reduce capital gains from collectables in later income years. There is no time limit on how long you can carry forward the net capital losses.

Write this amount (if any) at question 18 – label V in your supplementary tax return. Remember to deduct these losses from any capital gains in future income years.

Foreign resident capital gains withholding payments

Foreign resident capital gains withholding applies to certain transactions entered into on or after 1 July 2016. If an amount has been withheld from you and paid to the ATO we will advise you of the receipt of the withholding amount. You can claim a credit for the withholding amount at question 18 – label X in your supplementary tax return.

Look-through earnout rights and amending your earlier tax assessment

If you received or provided a financial benefit under a look-through earnout right created on or after 24 April 2015, you may need to seek an amendment to your tax assessment for the year in which the relevant CGT event occurred. You may be able to request such amendment via the CGT Schedule (if you satisfy the relevant conditions) when you lodge your current year income tax return. Detailed instructions are provided in item 7 Earnouts arrangements in Capital gains tax schedule and instructions 2025.

Completing your supplementary tax return

To complete this question, follow the steps.

Step 1

Read the capital gains tax publication that is relevant to your circumstances and work out the amount of your:

• capital gain or capital loss for each CGT event that happens
• capital gains from a trust (including a managed fund) for 2024–25.

Step 2

Add up all your capital gains for 2024–25 (except those that are disregarded) to work out your total current year capital gains.

Don't apply capital losses, any CGT discounts or the small business concessions (other than the 15-year exemption) to these capital gains.

Write this amount at question 18 – label H.

Step 3

Work out your net capital gain or net capital loss. This is the amount remaining after applying to your 2024–25 capital gains whichever of the following items are relevant to you (in the order in the following list):

• 2024–25 capital losses
• unapplied net capital losses from earlier years
• any CGT discounts (including any additional affordable housing discount)
• the small business 50% active asset reduction
• the small business retirement exemption or rollover.

If you have capital losses to apply, you'll find it to your advantage to apply them first to capital gains that don't qualify for the CGT discount.

If you're an individual (including a beneficiary of a trust) and you have a discount capital gain, then you may not be entitled to the maximum CGT discount percentage of 50%, if you're:

• a foreign or temporary resident
• an Australian resident with a period of non-residency after 8 May 2012.

For more information, see CGT discount for foreign residents.

If the total amount remaining is positive or zero, write it at question 18 – label A.

If you have a negative amount, don't put anything at label A. You have net capital losses to carry forward to later income years. Write the amount at question 18 – label V.

You can only use capital losses from collectables to reduce capital gains from collectables. You must disregard capital losses from personal use assets.

Step 4

Did you apply any exemption, rollover or additional discount?

• No – Go to Step 5.
• Yes – Print X in the Yes box at question 18 – label M.

Using the table, choose the exemption, rollover or additional discount code that best describes your circumstances. If more than one code applies, choose the code that applies to the largest amount of capital gain.

CGT exemption, roll-over or additional discount type codes

Code	CGT exemption or roll-over
A	Small business active asset reduction (Subdivision 152-C)
B	Small business retirement exemption (Subdivision 152-D)
C	Small business rollover (Subdivision 152-E)
D	Small business 15-year exemption (Subdivision 152-B)
E	Foreign resident CGT exemption (Division 855)
F	Scrip for scrip rollover (Subdivision 124-M)
I	Main residence exemption (Subdivision 118-B)
J	Capital gains disregarded as a result of the sale of a pre-CGT asset
K	Disposal or creation of assets in a wholly-owned company (Division 122)
L	Replacement asset rollovers (Division 124)
M	Exchange of shares or units (Subdivision 124-E)
N	Exchange of rights or options (Subdivision 124-F)
O	Exchange of shares in one company for shares in another company (Division 615)
P	Exchange of units in a unit trust for shares in a company (Division 615)
R	Demerger rollover (Subdivision 125-B)
S	Same asset rollovers (Division 126)
T	Small business restructure rollover (Subdivision 328-G)
U	Early stage investor (Subdivision 360-A)
V	Venture capital investment (Subdivision 118-F)
W	Affordable housing discount
X	Other exemptions and rollovers

Write the code in the CODE box at question 18 – label M.

Use code T if you either receive or dispose of an asset under the small business restructure rollover provisions.

Step 5

Do you have any unapplied net capital losses from earlier years?

• No – Go to Step 6.
• Yes – Read on.

You can use the net capital losses you have from earlier years, and that you haven't yet used, to reduce a capital gain in later years.

Write the amount of your net capital losses at question 18 – label V in your supplementary tax return.

Step 6

Are you claiming a credit for amounts withheld under the foreign resident capital gains withholding rules?

• No – Go to Where to go next
• Yes – Read on.

Write the amount of credit you're claiming at question 18 – label X.

Where to go next

• Go to question 19 Foreign entities 2025.
• Return to main menu Individual supplementary tax return instructions 2025.
• Go back to question 17 Net farm management deposits or repayments 2025.