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  • Introduction

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    The instructions in this part are designed to help companies, trusts and funds (your entity) to calculate a capital gain or capital loss and to complete the capital gains items on the relevant tax return:

    Funds include superannuation funds, approved deposit funds and pooled superannuation trusts.

    The labels to complete at these items are:

    G Did you have a CGT event during the year?

    A Net capital gain

    You will also need to complete V Net capital losses carried forward to later income years at the Losses information item on your entity's tax return.

    The relevant item number will be:

    New terms

     

    We may use some terms that are new to you. These words are explained in Definitions. Generally they are also explained in detail in the section where they first appear.

    Entity

    The term 'entity' is used to describe a company (including a head company of a consolidated group), a trust and a fund in this part of the guide.

    Worksheets

    The worksheets provided with this guide are the:

    • capital gain or capital loss worksheet (to calculate the capital gain or capital loss from each CGT event)
    • CGT summary worksheet (to calculate the net capital gain for the 2005-06 income year or net capital losses carried forward to later income years and to complete the CGT labels on the 2006 tax return).

    You can print out the worksheets and complete them as you work through this part.

    The worksheets are optional and your entity may prefer to use a different worksheet or a computer-based alternative. We have used these worksheets throughout this part of the guide as examples to help you complete the capital gains item on your entity's tax return, and a Capital gains tax (CGT) schedule 2006 if this is required.

    CGT schedule

    Your entity must complete this schedule for the 2005-06 income year if the:

    • total current year capital gains are greater than $10,000, or
    • total current year capital losses are greater than $10,000.

    If your entity is required to complete a CGT schedule, you must attach it to your entity's 2006 tax return.

    Consolidated groups

    If a group consolidates during the income year, the head company must lodge a CGT schedule if the total capital gains or total capital losses that it makes - as head company of the consolidated group and while not a member of a consolidated group - are greater than $10,000.

    An entity that has joined a consolidated group or groups during the year of income as a subsidiary member must lodge a CGT schedule covering any periods of non-membership if the entity satisfies the requirements for lodgment of that schedule.

    Detailed information on the operation of consolidation is available on our website or phone the Tax Reform Infoline on 13 24 78.

    Last modified: 06 Oct 2009QC 18504