• Step 4 How to complete the CGT schedule

    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

    Your entity must complete a CGT schedule for the 2013–14 income year if:

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

    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 income year 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.

    End of attention

    If your entity is required to complete a CGT schedule, attach it to your entity’s 2014 tax return. You should lodge only one CGT schedule with your entity’s tax return.

    If you are lodging a paper tax return and CGT schedule, print and complete the CGT schedule provided. To get copies of the preprinted schedule, phone our Publications Distribution Service on 1300 720 092.

    Print your entity’s tax file number (TFN), name and Australian business number in the boxes provided. The CGT schedule must be signed in the same way that the 2014 tax return is signed.

    Item 1 Current year capital gains and capital losses

    Transcribe the amounts at 1A to 1I for capital gains and from 1K to 1R for capital losses in table 1 on your CGT summary worksheet to the corresponding labels in item 1 of the CGT schedule. For example, transcribe the figure at 1A in table 1 of the CGT summary worksheet to label A Shares in companies listed on an Australian securities exchange in item 1 of the CGT schedule.

    Sum labels A to I in item 1 of the CGT schedule and write the total at J Total current year capital gains.

    Item 2 Capital losses

    Sum labels K to R in item 1 and write the total at A Total current year capital losses in item 2.

    From your CGT summary worksheet, transcribe the amounts at 2B in table 2, 2C in table 3 and 2D in table 4 to the corresponding labels in item 2 of the CGT schedule.

    Sum labels B, C and D in item 2 and write the total at label E Total capital losses applied.

    Item 3 Unapplied net capital losses carried forward

    Transcribe the amounts at 3A in table 9 and 3B in table 5 from your CGT summary worksheet to the corresponding labels in item 3 of the CGT schedule.

    Item 4 CGT discount

    Transcribe the amount at 4A in table 6 from your CGT summary worksheet to label A in item 4 of the CGT schedule.

    Item 5 CGT concessions for small business

    Transcribe the amounts 5A, 5B and 5C in table 7 from your CGT summary worksheet to the corresponding labels in item 5 of the CGT schedule.

    Sum labels A, B and C in item 5 and write the total at label D Total small business concessions applied.

    Item 6 Net capital gain

    Follow the instructions on the schedule to calculate A Net capital gain in item 6 of the CGT schedule.

    Item 7 Earnout arrangements

    Are you a party to an earnout arrangement?

    Print X in the appropriate box at A.

    If you printed X for Yes, as a buyer, provide the information requested below for the earnout arrangement. You will not need to complete D. If you are a buyer in a standard earnout arrangement, you will need to complete B and C. If you are a buyer in a reverse earnout arrangement, you will need to complete B, C and E.

    If you printed X for Yes, as a seller, provide the information requested below for the earnout arrangement.

    Write at B the number of years the earnout arrangement runs for in total.

    Write at C the year of the earnout arrangement you are in.

    For example, if you are in the second year of a four year earnout arrangement, you would write 4 at B and 2 at C.

    If you are the seller, write at D the total estimated capital proceeds from the earnout arrangement.

    Write at E the amount of any capital gain or loss you made under your earnout arrangement in the income year for which this schedule is being completed. If this amount is a loss, print L in the box at the right of the amount at E.

    If you are a party to more than one earnout arrangement you will need to provide details of all earnout arrangements in which you are a party. To do this, attach a separate sheet to the CGT schedule providing the details listed in this item for each additional earnout arrangement.

    Item 8 Other CGT information required (if applicable)

    Small business 15-year exemption

    Write the total amount of any capital gains disregarded by the small business 15-year exemption at A item 8 of the CGT schedule. Do not apply the CGT discount.

    Print in the code box at A the code from the list below that best describes the CGT asset or CGT event from which your entity made the capital gain. If your entity made capital gains from more than one CGT asset or CGT event, select the code which best describes the type of CGT asset or CGT event that produced the largest amount of capital gain.

    CGT asset or CGT event code:

    •  S shares
    •  U units in unit trusts
    •  R real estate
    •  G goodwill
    •  O other CGT assets or CGT events not listed above.
    Capital gains disregarded by a foreign resident

    If you are a foreign resident, you are subject to CGT if a CGT event happens to a CGT asset that is ‘taxable Australian property’. However, if you are eligible for an exemption then you may disregard the capital gain you have made. If your CGT asset is not a taxable Australian property, you do not need to answer this question.

    Write the total amount of any capital gains disregarded by the application of foreign resident exemption at B in item 8 of the CGT schedule. Do not apply the CGT discount.

    Capital gains disregarded as a result of scrip for scrip rollover

    During the income year, did your entity choose a scrip for scrip rollover when an arrangement was made to exchange original interests for replacement interests?

    Original interests are shares or units or other interests (or an option, right or similar interest in a company or trust), while replacement interests are similar interests in another company or trust.

    Write the total amount of any capital gains disregarded by the application of the scrip for scrip rollover at C in item 8 of the CGT schedule.

    Capital gains disregarded as a result of inter-company assets rollover

    A same asset rollover may be available where a company transfers or creates a CGT asset in another company that is a member of the same wholly-owned group, where at least one of the companies is a foreign resident.

    Write the total amount of any capital gains disregarded by the application of the inter-company asset rollover at D in item 8 of the CGT schedule.

    Capital gains disregarded by a demerging entity

    You may be eligible to disregard any capital gains arising from a demerger if you are a demerging entity in a demerger group, see Demerger exemption.

    Write the total amount of any capital gains disregarded by the application of the demerger exemption at E in item 8 of the CGT schedule. Do not include any amounts disregarded by the application of a Demerger rollover.

    After following all these steps, you have completed your entity’s CGT schedule.

    Remember to lodge the CGT schedule with your entity’s tax return.

    Do not lodge your worksheets. Keep these with your own records.

      Last modified: 01 Sep 2014QC 39804