Net capital gains calculation
Statement Purpose
This statement calculates the net capital gain amount by component, after offsetting capital losses and applying CGT discounting, as appropriate.
It is important to note that the statement doesn't provide CGT optimization calculations in relation to whether capital gains in relation to assets acquired prior to September 19 1999 should be determined as a discounted or indexed capital gain. This should be considered before the
current year capital gains and loss
information is input to the template. See the following in relation to the ordering of the offset of capital losses against capital gains.
Data Flow
Capital gains tax information in relation to the disposal of investments by the fund is linked from the
Capital gains import (Detailed)
or the Capital gains summary import
statement. Distributions of capital gains from other funds are linked from the Distribution entitlement summary
statement.Any tax exempt and/or tax-free capital gains/losses will need to be reversed out of the capital gains and losses. Therefore, the gross capital gain/loss will need to include any tax exempt and/or tax-free capital gains/losses. The total tax exempt and tax-free amounts will link through to the Tax exempt and NANE income statement.
The following realised gain and losses items that are capitalised under
Calculation setup
will appear in this statement:- Equity Options
- Forwards
- Futures
- Options
Any expenses selected to be capitalised in
Calculation setup
will be reversed out from Other Income and expenses
and added to this statement.Prior year capital losses will be transferred automatically from the
Losses summary
statement, as required, offsetting capital gains.If any of the options within the superannuation status question on the
Calculation setup
statement are answered as capital, the line items will display on the statement which will allow users to enter the amounts.An overall net capital loss will be linked to the
Losses summary
statement and Net capital gain calculation – Unrealised
.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:
Where foreign tax has been paid in relation to capital gains, the amount of foreign tax should be entered into the Withholding tax - capital gains
line in the Income statement
, where it will link to the income tax offsets amount in this statement. However, 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 amount of the foreign capital tax offset amount.In considering the ability to distribute foreign income tax offsets to unit holders, it should be kept in mind that for this purpose, the capital gain amount upon which foreign tax has been paid can be considered to be income in the foreign sourced income class (
see subsection 160AE (2) of ITAA 1936
). Adjustments should be made for this fact, as appropriate.Explanation of Fields
Where CGT discounting is not appropriate (example: due to the application of section 115-45 ITAA 1997), this should be adjusted for in the input cells in the
Capital gains discount denied
row.Current year and prior year capital losses will be offset against CGT components in the following order:
- Other capital gains
- Indexed capital gains
- Discounted capital gains
Capital losses will be recouped against TAP gains in priority to NTAP gains. This order of offset 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 is flowing from the foreign capital gains withholding tax
amount in the Income statement
and the Distribution entitlement summary
statement.Signage
- Adjustments to increase the amount of capital gains are entered as positive amounts.
- Adjustments to decrease the amount of capital gains are entered as negative amounts.
- An adjustment to cancel the benefit of CGT discounting is entered as a negative amount.