1. Reduce your capital gains for the income year, in the order you choose, by your capital losses for the income year. (If the capital losses for the income year exceed the capital gains, the difference is your net capital loss. You cannot deduct a net capital loss from your assessable income.)
2. Reduce any remaining capital gains, in the order you choose, by any unapplied net capital losses for previous income years.
3. Reduce any remaining discount capital gains by the discount percentage.
To find out what is a discount capital gain and the discount percentage: see Division 115.
4. If you carry on a small business, apply the small business concessions in further reduction of your capital gains (whether or not the gains are discount capital gains).
For the small business concessions: see Division 152.
5. Add up:
(a) any remaining capital gains that are not discount capital gains; and
(b) any remaining discount capital gains.
The total is your net capital gain.
For the rules on working out your net capital gain or loss: see Division 102.