New Business Tax System (Integrity and Other Measures) Act 1999 (Incorporating amendments up to Act No. 78 of 2001) (169 of 1999)

Schedule 9   Concessions for capital gains by individuals and some other entities

Part 1   New rules

Income Tax Assessment Act 1997

1   Section 100-50

Repeal the section, substitute:

100-50 How to work out your net capital gain or loss

1. Reduce your capital gains for the income year, in the order you choose, by your capital losses for the income year. (If the capital losses for the income year exceed the capital gains, the difference is your net capital loss. You cannot deduct a net capital loss from your assessable income.)

2. Reduce any remaining capital gains, in the order you choose, by any unapplied net capital losses for previous income years.

3. Reduce any remaining discount capital gains by the discount percentage.

To find out what is a discount capital gain and the discount percentage:
see Division 115.

4. Add up:

(a) any remaining capital gains that are not discount capital gains; and

(b) any remaining discount capital gains.

The total is your net capital gain.

For the rules on working out your net capital gain or loss:
see Division 102.