Treatment of CGT discount in tax statements

Class Super makes an assumption that you have used a 50% discounted value for the "Discounted Capital Gain Domestic/Foreign" fields.

The 50% discount amount is what is provided on the vast majority of Tax Statements, even when the provider knows that the investor is a SMSF.

Based on this assumption the Calc. function on the "Grossed Up Capital Gains Discount Method" now applies the following formula:

(Discounted Capital Gain Domestic + Discounted Capital Gain Foreign) x 2

You may still override this calculation if required. Class will then apply 1/3 discounts to the amount displayed under "Grossed Up Capital Gains Discount Method".

What this means

When entering tax statements in Class, ensure that you enter is as shown on the tax statement generated by the managed fund provider.

For example:

The SMSF received a distribution in which it contained distributed capital gains of $508.86 ($254.43 CGT Concession and $254.43 Discount).

The tax statement was entered exactly as per the statement attached i.e. it was NOT entered by trying to accommodate the 1/3 discount.

As a result, the Capital Gains Tax Schedule shows as per the below;

  • What you will see is that the gross capital gain is included, and then after applying the current and prior year losses, the 1/3 discount is applied
  • Had we put in anything else different in the distribution tax statement, then obviously the result will differ and I believe will be incorrect.


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