Pt 3-1 inserted by No 46 of 1998.
Div 102 inserted by No 46 of 1998.
Reduce the *capital gains you made during the income year by the *capital losses (if any) you made during the income year.
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.
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.
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).
Section 102-15 explains how to apply net capital losses.
You choose the order in which you reduce the amounts.
Reduce by the *discount percentage each amount of a *discount capital gain remaining after step 2 (if any).
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.
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.
The basic conditions for getting these concessions are in Subdivision 152-A.
Subdivision 152-C does not apply to CGT events J2, J5 and J6. In addition, Subdivision 152-E does not apply to CGT events J5 and J6.
Add up the amounts of *capital gains (if any) remaining after step 4. The sum is your net capital gain for the income year.
S 102-5(1) amended by No 55 of 2007, s 3 and Sch 1 item 3, by substituting note 2 of step 4 of the method statement, applicable to CGT events happening in the 2006-07 income year or later income years. Note 2 of step 4 formerly read:
Note 2: The small business concessions (other than small business roll-overs and the small business retirement exemption) are not available for CGT events J2 and J3.
S 102-5(1) amended by No 41 of 2005, No 165 of 1999 and substituted by No 169 of 1999.
any *net capital loss you made for an earlier income year must be disregarded in working out whether you made a *net capital gain for the income year or a later one.
S 102-5 inserted by No 46 of 1998.