Capital Gains Tax back to rates and parameters
Capital Gains Tax (CGT) applies to the disposal of assets acquired after 19 September 1985.
CGT is not a separate tax. Any "net capital gain" that accrues to a taxpayer during the year is included in the assesable income of the taxpayer for income tax purposes.
It is suggested that you print this worksheet and fill in the relevant details.
How to calculate CGT : |
| Step 1: [(index in September 1999 - Indexation ceased to apply in September 1999)/(index in quarter of purchase)] x (purchase price*) = Index Cost Base (ICB) * Include aquisition costs in the purchase price. |
| Step 2: Your indexed capital gain is (Sale Price* - ICB) and it is added to your taxable income
* Sale Price is net of sale costs. |
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| Step 3: Calculate your nominal gain Net Sale Proceeds Purchase Price Nominal Gain - = |
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| Step 4: Choose the lesser of 1/2 (2/3 for a superannuation fund) of the nominal gain and your full indexed capital gain.
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