Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_1:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/9)
Character Range: 5356–8079

1  Before Part 3‑5

Insert:

Part 3‑1—Capital gains and losses: general topics

Division 100—A Guide to capital gains and losses

General overview

100‑1  What this Division is about

      This Division is a simplified outline of the capital gains and capital losses provisions, commonly referred to as capital gains tax (CGT). It will help you to understand your current liabilities, and to factor CGT into your on‑going financial affairs.

Table of sections

100‑5 Effect of this Division
100‑10 Fundamentals of CGT
100‑15 Overview of Steps 1 and 2

Step 1—Have you made a capital gain or a capital loss?

100‑20 What events attract CGT?
100‑25 What are CGT assets?
100‑30 Does an exception or exemption apply?
100‑33 Can there be a roll‑over?

Step 2—Work out the amount of the capital gain or loss

100‑35 What is a capital gain or loss?
100‑40 What factors come into calculating a capital gain or loss?
100‑45 How to calculate the capital gain or loss for most CGT events

Step 3—Work out your net capital gain or loss for the income year

100‑50 How to work out your net capital gain or loss
100‑55 How do you comply with CGT?

Keeping records for CGT purposes

100‑60 Why keep records?
100‑65 What records?
100‑70 How long you need to keep records

100‑5  Effect of this Division

  This Division is a *Guide.

Note: In interpreting an operative provision, a Guide may be considered only for limited purposes: see section 950‑150.

100‑10  Fundamentals of CGT

 (1) CGT affects your income tax liability because your assessable income includes your net capital gain for the income year. Your net capital gain is the total of your capital gains for the income year, reduced by certain capital losses you have made.

See later in this Guide (section 100‑50) for more detail.

 (2) When you prepare your income tax return, you need to check whether you have made any capital gains for the income year.

  You also need to check whether you have made any capital losses. You cannot deduct a capital loss from your assessable income, but it will reduce your capital gain in the current income year or later income years.

 (3) You will also need to consider the impact of CGT when doing your financial planning. In particular, you will need adequate record‑keeping to deal most effectively with any immediate or future CGT liability.

  To give you a sense of the range of things affected by CGT, if you are involved with any of the following, you may have a CGT liability now or at some time in the future:

    * leases                     * marriage breakdown
    * inheritance                * working from home
    * subdividing land           * shares
    * goodwill                   *