Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:1_7
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 1 cl 7
Character Range: 47464–49798

7  Subsection 102‑5(1) (method statement)
Repeal the method statement, substitute:

      Working out your net capital gain
           Step 1. Reduce the *capital gains you made during the income year by the *capital losses (if any) you made during the income year.
                  Note 1: You choose the order in which you reduce your capital gains. You have a net capital loss for the income year if your capital losses exceed your capital gains: see section 102‑10.
                  Note 2: Some provisions of this Act (such as Divisions 104 and 118) permit or require you to disregard certain capital gains or losses when working out your net capital gain. Subdivision 152‑B permits you, in some circumstances, to disregard a capital gain on an asset you held for at least 15 years.
           Step 2. Apply any previously unapplied *net capital losses from earlier income years to reduce the amounts (if any) remaining after the reduction of *capital gains under step 1 (including any capital gains not reduced under that step because the *capital losses were less than the total of your capital gains).
                  Note 1: Section 102‑15 explains how to apply net capital losses.
                  Note 2: You choose the order in which you reduce the amounts.
           Step 3. Reduce by the *discount percentage each amount of a *discount capital gain remaining after step 2 (if any).
                  Note: Only some entities can have discount capital gains, and only if they have capital gains from CGT assets acquired at least a year before making the gains. See Division 115.
           Step 4. If any of your *capital gains (whether or not they are *discount capital gains) qualify for any of the small business concessions in Subdivisions 152‑C, 152‑D and 152‑E, apply those concessions to each capital gain as provided for in those Subdivisions.
                  Note 1: The basic conditions for getting these concessions are in Subdivision 152‑A.
                  Note 2: The small business concessions (other than small business roll‑overs) are not available for CGT events J2 and J3.
           Step 5. Add up the amounts of *capital gains (if any) remaining after step 4. The sum is your net capital gain for the income year.
Note: For exceptions and modifications to these rules: see section 102‑30.