Net capital gains calculation
Statement Purpose
This statement calculates the consolidated net capital gain amount by component, after offsetting capital losses and applying CGT discounting, as appropriate.
note
The statement does not provide CGT optimisation for assets acquired prior to 19 September 1999 (discounted vs indexed gains). This should be determined before entering current year capital gains and losses into the template.
See the following sections for the ordering of the offset of capital losses against capital gains.
Data Flow
Capital gains tax information related to disposals by the fund is linked from
Capital gains import
or Capital gains summary import
. Distributions of capital gains from other funds are linked from the Distribution entitlement summary
statement.Aggregated capital gain/loss amounts flow from
Capital gains information
if the option Include aggregated gross capital gain or loss from member entities
is selected in Calculation Setup
. The aggregated amount includes any capitalised expenses and capitalised realised gains or losses from entities within the group and is displayed as a consolidated amount in this statement.Aggregated foreign capital tax offset amounts flow from
Capital gains information
if the option Aggregated foreign capital tax offset
is selected in Calculation Setup
.Any tax exempt or tax-free capital gains or losses must be reversed out of the capital gains or losses. Therefore, the gross capital gain or loss must include any tax exempt or tax-free amounts. The total tax exempt and tax-free amounts link to the
Tax exempt and NANE income
statement.Prior year capital losses are transferred automatically from the
Losses summary
statement, as required, to offset capital gains.If any of the options within the superannuation status question on the
Calculation setup
statement is answered as capital, the relevant line items will display to allow input.An overall net capital loss is linked to the
Losses summary
statement.Concessional CGT amounts:
A concessional CGT amount relating to the disposal of fund assets is transferred to the Tax exempt and NANE income
statement.Foreign tax paid in relation to capital gains:
Foreign tax paid should be entered in the Withholding tax - capital gains
line in the Income statement, from where it links to the income tax offsets amount in this statement.The relevant capital gain amount should be input on a gross basis to the Net Capital Gains schedule. To avoid double counting in the Tax reconciliation statement, the
Gain or loss on investment
amount is reduced by the foreign capital tax offset amount.When distributing foreign income tax offsets to unit holders, note that the capital gain upon which foreign tax has been paid can be considered income in the foreign sourced income class (see subsection 160AE(2) of ITAA 1936). Adjust as appropriate.
Explanation of Fields
Where CGT discounting is not appropriate (example: due to section 115-45 ITAA 1997), adjust the input cells in the
Capital gains discount denied
row.Current year and prior year capital losses are offset against CGT components in the following order:
- Other capital gains
- Indexed capital gains
- Discounted capital gains
Capital losses are recouped against TAP gains in priority to NTAP gains. This order can be amended manually in the
Other
section if a different loss offset policy has been adopted by the fund.Foreign capital tax offset:
The foreign capital tax offset amount in the Summary information
section flows from Capital gains information
(if Aggregated foreign capital tax offset
is selected in Calculation Setup
) and from Capital gains information detail
. The foreign capital tax offset (trust distribution) flows from the Distribution entitlement summary
statement.Signage
- Adjustments to increase capital gains are entered as positive amounts.
- Adjustments to decrease capital gains are entered as negative amounts.
- An adjustment to cancel the benefit of CGT discounting is entered as a negative amount.