Capital Gains Tax Calculation 2016

The assignment presents a detailed solution to a capital gains tax (CGT) calculation for the year 2016. It outlines the steps involved in determining the assessable income from disposal of assets, applying indexation and discount allowances, and incorporating capital losses. The solution includes specific figures related to different asset types (shares, real estate, collectables), highlighting how they contribute to the overall CGT calculation.

AUSTRALIAN TAXATION LAW

COVER PAGE
Individual tax return 2016
1 July 2015 to 30 June 2016
Your tax file number (TFN) 188 128 215 Are you an Australian resident? Y Print Y for yes
or N for no.
See the Privacy note in the Taxpayer's Have you included any attachments?
declaration on page 15 of this return. N Print Y for yes
or N for no.
Your name Title - for example, Mr
Mr, Mrs, Ms, Miss
Surname or family name Michael
Given names Knight
Has any part of your name
changed since completing N Print Y for yes If yes, print
your last tax return? or N for no. previous surname.
Your postal address 19 Abercrombie Road
Has your postal address Clayfield QLD 4011
changed since completing Print Y for yes
or N for no.
your last tax return?
Your home address 19 Abercrombie Road
If the same as your current
postal address, print AS
ABOVE. Clayfield QLD 4011
Your mobile phone number 0422871064
Your daytime phone number Area 07 Phone [phone]
(if different from your mobile phone code number
number above )
Your email address [e-mail]
Your contact details may be used by the ATO:
- to advise you of tax return lodgment options
- to correspond with you with regards to your taxation and superannuation affairs
- to issue notices to you, or
- to conduct research and marketing.
Your date of birth Final tax return N
If you were under 18 years of age on 03/08/1979 If you know this is your final
30 June 2016 you must complete tax return, print FINAL.
item A1 on page 5 of this tax return.
Electronic funds transfer (EFT) Use Agent Trust Account? N
We need your financial institution details BSB number Account
to pay any refund owing to you, even if (must be six digits) number
you have provided them to us before.
Write the BSB number, account number Account name (for example, JQ Citizen. Do not show the account type,
and account name below. such as cheque, savings, mortgage offset)
INCOME TAX RETURN

Income
1 Salary or wages
Your main salary and wage occupation
Newspaper journalist Occupation code X 212413
Payer Allowances Lump A Lump B Tax Withheld Gross
The Brisbane Telegraph ABN: 90 850 815 320
ABN:
5,640
ABN: 90 850 815 320
ABN:
37,818.00 127,700
Brisbane Telegraph ABN: 90 850 815 320
2 Allowances, earnings, tips, director’s fees etc. K 5,640
Allowances from Item 1 5,640
Total tax withheld Add up theboxes. $ 37,818.00
10 Gross interest Gross L 181
interest
Tax file number amounts M 71.00
withheld from gross interest
Bank / Branch / Account TFN amt Gross amt
ANZ 143
St George 71.00 38
11 Dividends Unfranked amount S 1,309
Franked amount T 3,450
Tax file number amounts V 174.00 Franking credit U 1,478
withheld from dividends
Company Unfranked Franked Imp Cred TFN Amt
AMP 120.00 324.00 138.86
Cabcharge 98.00 207.00 88.71
Commonwealth bank of Aust. 875.00 375.00
Flight centre 640.00 274.29
IIuka Resources 102.00 98.00
Oz Minerals 320.00
Seven West media 165.00 256.00 109.71
Telstra 720.00 308.57
US Dividend 504.00 428.00 183.43 76.00
Only used by taxpayers completing the supplementary section LOSS
Transfer the amount from TOTAL SUPPLEMENT INCOME OR LOSS (32,995) / L
LOSS
TOTAL INCOME OR LOSSAdd up the income amounts and deduct any loss amount in the boxes.
106,763 /

Deductions
D1 Work related car expenses A 47,273 CLAIM B
/
Motor car 47,273 B
D2 Work related travel expenses B 1,677
Travel expenses 1,677
D5 Other work related expenses E 8,352
Mobile telephone 1,284
AJA annual renewal 1,039
Australian Geographic 92
Research purposes 785
Membership renewal fee 488
Home internet 384
Computer 2,800
Insurance for income protection 1,480
D9 Gifts or donations J 850
Diabetic Association of Queensland LTD 120
Hepatitis Queensland Inc. 80
Breast cancer Australlia 100
Queensland University of technology 50
Srilanka disaster 75
rainbow beach surf livesaving 200
gala charity ball 175
Donation to beyong blue 50
D10 Cost of managing tax affairs M 674
Tax agent fee 600
General interest charge 74
Only used by taxpayers completing the supplementary section
Transfer the amount from TOTAL SUPPLEMENT DEDUCTIONS 5,640
TOTAL DEDUCTIONS Items D1 to add up the boxes 64,466
LOSS
SUBTOTAL TOTAL INCOME OR LOSS less TOTAL
DEDUCTIONS 42,297 /
Subtract amounts at F and Z
item L1 LOSS
TAXABLE INCOME OR LOSS from amount at SUBTOTAL $ 42,297 /
TOTAL TAX OFFSETS Items T2 and —add up the boxes U 0
M2 Medicare levy surcharge (MLS)
THIS ITEM IS COMPULSORY
If you do not complete this item you may be charged the full Medicare levy surcharge.

For the whole period 1 July 2015 to 30 June 2016, were you and all your dependants E Print Y for yes
(including your spouse) - if you had any - covered by private patient HOSPITAL cover? or N for no.
Number of days NOT A
liable for surcharge
Private health insurance policy details
You must read Private health insurance policy details in the tax return instructions before completing this item.
Fill all the labels below unless directed in the instructions.
Health B MBP Membership C 27801916
insurer ID number
Your premiums eligible for J 2,060 Your Australian Government K 573
Australian Government rebate rebate received
CODE
Benefit code L 30 Tax claim code. Read the A
tax return instructions.
Health B MBP Membership C 27801916
insurer ID number
Your premiums eligible for J 807 Your Australian Government K 219
Australian Government rebate rebate received
CODE
Benefit code L 31 Tax claim code. Read the A
tax return instructions.
Income tests
You must complete this section.
If you had a spouse during 2015-16 you must also complete Spouse details – married or de facto on page 7.
If the amount is zero, write 0.
IT1 Total reportable fringe benefits amount W 0
IT2 Reportable employer superannuation contributions T 0
IT3 Tax-free government pensions U 0
IT4 Target foreign income V 0
IT5 Net financial investment loss X 0
IT6 Net rental property loss Y 32,995
Net rent from partnerships - Item 13 0
Net rent - Item 15 0
Net rent from partnerships/sole trader activities - Item 16 0
Total foreign rental income or loss - Items 20R, 24Y less D15J 0
Net rent - Item 21 32,995 L
Less: Deduction - Item D6 0
TOTAL (transfers to Label Y - LOSS amounts only) 32,995 L
IT7 Child support you paid Z 0
IT8 Number of dependent children D 0

(For ATO validation only)
Adjusted taxable income 80,932 /
Estimated total income 169,618 /
Estimated eligible income 133,340
Spouse details—married or de facto Use related ref details? Y
If you had a spouse during 2015-16, you must complete Spouse details - married or de facto.
We need the information included in this section to assess your tax accurately.
If you did not have a spouse, go to page 8.
Your spouse's name
If you had more than one spouse during 2015-16 print the name of your spouse on 30 June 2016 or your last
spouse.
Surname or family name Knight
First given name Ashleigh Other given names Grace
Day Month Year
Your spouse's K 15/05/1980
date of birth
Your spouse's gender Male Female XIndeterminate
Period you had a spouse - married or de facto
Did you have a spouse for the full year L X
- 1 July 2015 to 30 June 2016? No Yes
From
If you did not have a spouse for the M
full year, write the dates you had a to
spouse between 1 July 2015 and N
30 June 2016.
Did your spouse die during the year? No X Yes
This information relates to your spouse's income
You must complete all labels
Pre-fill using related ref return details? (Related ref for spouse details above must be answered Y)
Y Your spouse’s 2015-16 taxable income O 12,600
Your spouse’s share of trust income on which the trustee is assessed under T 0
section 98 and which has not been included in spouse’s taxable income
Distributions to your spouse on which family trust distribution tax has been paid and which U 0
your spouse would have had to show as assessable income if the tax had not been paid
Your spouse's total reportable fringe benefits amounts S 0
Amount of Australian Government pensions and allowances (see Q6 Australian Government
pensions and allowances in the tax return instructions) that your spouse received in 2015-16 P
(exclude exempt pension income)
Amount of exempt pension income (see Spouse details - married or de facto in the instructions) Q
that your spouse received in 2015-16. Do not include any amount paid under the
Military Rehabilitation and Compensation Act 2004

Amount of your spouse’s reportable superannuation contributions (which is the total of reportable A
employer superannuation contributions and deductible personal superannuation contributions)
Other specified exempt payments that your spouse received B
(see Spouse details – married or de facto in the instructions)
Your spouse’s target foreign income C
Your spouse’s total net investment loss (total of net financial D
investment loss and net rental property loss)
Child support your spouse paid E
Your spouse’s taxed element of a superannuation lump sum for which the tax rate F
is zero (see M2 Medicare levy surcharge in the tax return instructions)
Spouse’s total ATI 12,600 /
(ATO validation purpose only)
18 Capital gains
Did you have a capital gains G Print Y for yes
tax event during the year? or N for no.
Have you applied an CODE
M /
Exemption or rollover?
Net capital gain A
19 Foreign entities
Did you have either a direct or indirect interest I N Print Y for yes
CFC income K
in a controlled foreign company (CFC)? or N for no.
Have you ever , either directly or indirectly, caused W N Print Y for yes
Transferor B
the transfer of property—including money—or orN for no. trust income
Services to a non-resident trust estate?
20 Foreign source income and foreign assets or property
During the year did you own, or have an interest in, P N Print Y for yes
Assets located outside Australia which had or N for no.
A total value of AUD$50,000 or more?
21 Rent Gross rentP 29,860
Interest deductions Q 23,829
Capital works deductions F
LOSS
Other rental deductions U 39,026 Net rent 32,995 / L
P less (Q + F + U)
LOSS
TOTAL SUPPLEMENT Items 13 to 24 - add up theboxes for income amounts and
deduct(32,995) / L
any loss amounts in the boxes

INCOME OR LOSS
Transfer this amount toon page 3
D12 Personal superannuation contributions H 5,640
Fund name / TFN / ABN Account no
Fringe benefit tax ABN:90 850 815 320 TFN:188 128 215The Brisbane telegraph 5640
TOTAL SUPPLEMENT DEDUCTIONS
Items D11 to D15 —add up the boxes and transfer this amount to 5,640
TOTAL SUPPLEMENT Items T3, T4, T6, T7, T8 and T9 - add up the boxes
TAX OFFSETS Transfer this amount to
Taxpayer’s declaration
Read and sign the declaration after completing your tax return, including the Supplementary section, Business and
professional items section and other schedules if applicable.
I declare that:
• the information provided to my registered tax agent for the preparation of this tax return is true and correct, and
• I authorise my registered tax agent to lodge this tax return.
Taxpayer's Day Month Year
Signature Date
Important: The tax law imposes heavy penalties for giving false or misleading
information.
The ATO will issue your assessment based on your tax return. However, the ATO has some time to review
your tax return, and issue an amended assessment if a review shows inaccuracies that change the
assessment. The
standard review period is two years but for some taxpayers it is four years.
Privacy:
The ATO is authorised by the Taxation Administration Act 1953 to request your tax file number (TFN). We will
use your TFN to identify you
in our records. It is not an offence not to provide your TFN. However if you do not provide your TFN, your
assessment may be delayed.
Taxation law authorises the ATO to collect information and to disclose it to other government agencies. For
information about your privacy
go to ato.gov.au/privacy
Tax agent’s declaration
I, HANDISOFT SOFTWARE TESTER
declare that this tax return has been prepared in accordance with information supplied by the taxpayer,
that the taxpayer has given me a declaration stating that the information provided to me is true and correct
and that the taxpayer has authorised me to lodge the tax return.
Agent’s signature Date Client’s reference
Day Month Year MICH0001
Agent’s telephone number
Contact name Area code Telephone number Agent’s reference number
00013000

Calculation of Franking credits
Particulars Dividend Tax rate
Formula ((Dividend
amount/(1-tax rate))-
Dividend amount)
AMP 324 30.00% 138.85
Cab Charge 207 88.71
Common wealth Bank of
Australia 875 375
Flight Centre 640 274.28
Lluka resources 0 0
Oz minerals 0 0
Seven west media 256 109.71
Teslstra 720 308.57
US Dividend 428 183.426
Calculation of depreciation
Asset Cost Life of asset Depreciation
Ceiling fan 1320 10 132
Rug 1160 10 116
Free-standing mirror 270 10 27
Washing machines 1640 15 109.3333333333
Computer 2800 4 700
Income Tax Return Tax Estimate 2016
Mr Knight Michael TFN: 188 128 215
Tax Payable for Individual
Taxable Income 42,297
Tax Free Part 18,200
Tax Payable on Taxable Income 5,293.52
Sub-Total $ 5,293.52
Less Offsets: Offsets (T2 to T9) 0.00
Private Health Insurance Offset - Payable (2.80)
Seniors / Pension / Beneficiary Offset 0.00
Small business income offset 0.00
Low Income Offset 365.55
Lump Sum 0.00
Other Offsets 0.00
Sub-Total $ 362.75

4,930.77
Plus: Medicare Levy (inc surcharge @ 1.00% = 422.97) 1,268.91
Sub-Total $ 1,268.91
6,199.68
Less Credits: Tax withheld - salary & wage type income 37,818.00
Arrears tax withheld 0.00
Foreign Tax Credits 0.00
TFN Amounts (credits) 245.00
Franking Tax Offset (refundable) 1,478.00
Other Refundable Credits 0.00
Other Amounts withheld - ABN,Vol,Labour,Foreign 0.00
PAYG Income Tax Instalments 0.00
Sub-Total $ 39,541.00
Estimated Tax Refund 33,341.32
TAX SUMMARY
Postal: 19 Abercrombie Road Home: 19 Abercrombie Road
Clayfield QLD 4011 Clayfield QLD 4011
Resident: Yes
Birth date: 03/08/1979 Spouse: Ashleigh Grace Knight
Your mobile number: 0422871064
Daytime Phone: [phone]
Your email address: [e-mail] Final return: No
Item Description 2016
$c $
1 Occupation: Newspaper journalist, code 212413
Gross payment (ABN: 90850815320) NOTE: Total of prior year amounts shown may not relate to this ABN — —
Gross payment (ABN: —) — —
Gross payment (ABN: 90850815320) — —
Gross payment (ABN: —) 37,818.00 127,700
Gross payment (ABN: 90850815320) — —
2 Amount of allowances, earnings, tips, director's fees, etc — 5,640
Total tax withheld 37,818.00
10 Gross interest 181
TFN amounts withheld from gross interest 71.00
11 Dividends - Unfranked amount 1,309
Dividends - Franked amount 3,450
Dividends - Franking credit 1,478
TFN amounts withheld from dividends 174.00
Total supplement income or loss (32,995)
TOTAL INCOME OR LOSS 106,763
D1 Work related car expenses 47,273
Work related car expenses action code: B
D2 Work related travel expenses 1,677
D5 Other work related expenses 8,352
D9 Gifts or donations 850
D10 Cost of managing tax affairs 674

Total supplement deductions 5,640
TOTAL DEDUCTIONS 64,466
TAXABLE INCOME OR LOSS 42,297
TOTAL TAX OFFSETS 0
2016 Private health insurance - ID: MBP, memb no: 27801916, Premium: 2060, Rebate: 573, Benefit Code: 30, Tax Claim Code: A
2016 Private health insurance - ID: MBP, memb no: 27801916, Premium: 807, Rebate: 219, Benefit Code: 31, Tax Claim Code: A
Your premiums eligible for Australian Government rebate 2,867
Your share of Australian Government rebate received 792
IT1 Total reportable fringe benefits amounts 0
IT2 Reportable employer superannuation contributions 0
IT3 Tax free government pension 0
IT4 Target foreign income 0
IT5 Net financial investment loss 0
IT6 Net rental property loss amount 32,995
IT7 Child support you paid 0
IT8 Number of dependent children: 0
SD Spouse's date of birth: 15/05/1980
Spouse's gender: F
Adjusted taxable income 80,932
Estimated total income 169,618
Estimated eligible income 133,340
SD Did you have a spouse for the full year?: Yes
Did your spouse die during the year?: No
Spouse's taxable income 12,600
Your spouse's section 98 trust income - not included in spouse's taxable income 0
Distributions to your spouse on which family trust distribution tax has been paid 0
Your spouse's total reportable fringe benefits amounts 0
Your spouse's ATI total amount 12,600
19 Did you have either a direct or indirect interest in a controlled foreign company?: No
Have you EVER, either directly or indirectly, caused the transfer of property or services to a non-resident trust estate?: No
20 During the year did you own, or have an interest in, assets located outside Australia which had a total value of AUD $50,000 or more?:
No
21 Gross rent 29,860
Interest deductions 23,829
Other rental deductions 39,026
Net rent (32,995)
D12 2016 Personal super contributions: Fringe benefit tax, Acc no: Th ebr isb ane, ABN: 90 850 815 320, TFN: 188 128 215
Deduction claimed 5,640
TOTAL SUPPLEMENT DEDUCTIONS 5,640
Taxable income: $42,297
Estimated tax payable (refundable): ($33,341.32)
Individual PAYG payment summary schedule 2016
1 July 2015 to 30 June 2016
Tax file number (TFN) 188 128 215
Name Title—for example, Mr
Mr, Mrs, Ms, Miss
Surname or Michael

family name
Given names Knight
Nature of income Print X in the appropriate box. Business income Personal services income
Payer Name Payer ABN/WPN Type Tax Withheld Gross Amount
The Brisbane telegraph 90 850 815 320 Abn not quoted 37818 127700
Abn not quoted
TOTALS Abn (N): 37,818 127,700
Rental Property Schedule 2016
Address of Rental Property 13 Avatar street Everton park
Brisbane QLD 4053
Date property first earned rental income 02/08/2016
Number of weeks property was rented this year 48
Private Use %
Ownership % owned
Michael Michael MICH0001 100.00
Income Return
Gross rental income 29,860 29,860
Other rental related income
Gross Rent 29,860 29,860
Expenses Total Prv % Return
O Pest control 870 870
G Cleaning 174 174
H Council Rates 3,555 3,555
L Interest on loans MICH0001 20,707 20,707
K Insurance 814 814
P Property agent fees/commission 2,538 2,538
Q Repairs and maintenance 311 311
T Travel expenses 68 68
T Travel expenses MICH0001 94 94
N Legal fees 19,600 19,600
L Interest on loans MICH0001 3,122 3,122
E Body corporate fees 520 520
V Sundry rental expenses 4,390 4,390
Q Repairs and maintenance 5,120 5,120
Q Repairs and maintenance 360 360
I Capital allowances (depreciation) 612 612
Total expenses 62,855 62,855
Net Rent 32,995 / L 32,995 / L
Depreciation Worksheet 2016

Title Depreciation
Transfer to 3 Rental: Rental
Private Use % (default private use % for this worksheet)
Instant Asset Write-Off
19/08/2015 Rug 1,160
19/08/2015 Freestanding mirrors 270
19/08/2015 washing machine 1,640
19/08/2015 Ceiling fan 1,320
Total 4,390
Motor Vehicle and Travel Expenses 2016
Car Expenses - Actual Business Expenses Method
Registration 219BUS No Transfer
Kilometres 29,986
Business 74.00 % Car Y Amount
Interest
Depreciation 57,466
Fuel 2,780
Lease
Registration and Insurance 2,312
Repairs 970
Deodizers 266
Memebership 88
Total $ 63,882
Amount claimed $ 47,273
Travel Expenses - Domestic or Overseas
Date of trip 04/05/2016 No Transfer
Itinerary Michael checked into The langham hotel in melbourne for two night
Travel Diary Y Amount
Air fares etc 670
Accommodation 650
Meals 186
Incidentals 171
Private portion $
Amount claimed $ 1,677
Capital Gains Worksheet 2016
Description
Land % 100.00 REAL ESTATE - OTHER
Acquisition :
30/05/1987 Land 2,370,000 1.494 3,540,780
Disposal :

13/11/2015 241,600
Cost base 2,370,000 Frozen 3,540,780
- Allowable deductions
+ Assessable income on disposal 241,600
Assessable Amount
Reduced cost base 2,611,600 Gain
Discountable (Individual - subject to discount) 2,370,000 / L
Frozen Indexation 2,370,000 / L
Challenger Energy Ltd % 100.00 SHARES - AUST
Acquisition :
01/08/2015 Shares in challenger 100,000 3,200 2 1.000 3,200
Disposal :
30/06/2015 60,000 2,540
Cost base 3,200 Frozen 3,200
- Allowable deductions 50
+ Assessable income on disposal 2,540
Assessable Amount
Reduced cost base 2,490 Gain
Collection records % 100.00 COLLECTABLES
Acquisition :
18/05/1994 Collectables 100 1,600 1 1.110 1,776
Disposal :
18/05/2016 100 600
Cost base 1,600 Frozen 1,776
- Allowable deductions 0
+ Assessable income on disposal 600
Assessable Amount
Reduced cost base 2,200 Gain
Discountable (Individual - subject to discount) 1,600 / L
Frozen Indexation 1,600 / L
Lindsay painting % 100.00 OTHER
Acquisition :
18/03/2011 Painting 600 1 1.000 600
Disposal :
09/06/2016 3,780
Cost base 600 Frozen 600
- Allowable deductions
+ Assessable income on disposal 3,780
Assessable Amount
Reduced cost base 4,380 Gain

Discountable (Individual - subject to discount) 3,180 / 1,590
Frozen Indexation 3,180 / 3,180
Capital gains from CGT Assets/Events 2016
Amounts shown are PRE any applicable discount and/or losses.
Indexation Discountable Other
Shares - Aust (S) - - -
Shares - Other (X) - - -
Units in Unit Trusts - Australia (U) - - -
Units in Unit Trusts - Other (Y) - - -
Real Estate - Australia (R) - - -
Real Estate - Other (Z) - - -
Capital gains from Trusts (T) - - -
Collectables (C) - - -
Other (O) - 3,180 -
2016 Current year capital Losses (CYCL) from CGT Assets/Events
Shares - Aust (S) -
Shares - Other (X) -
Units in Unit Trusts - Australia (U) -
Units in Unit Trusts - Other (Y) -
Real Estate - Australia (R) -
Real Estate - Other (Z) 2,370,000
Capital gains from Trusts (T) -
Collectables (C) 1,600
Other (O) -
Applying capital losses against current year capital gains
Indexation Discountable Other
Current year capital losses applied - - -
Prior year capital losses applied - - -
Current year capital gains (CYCG) after applying capital losses
Indexation Discountable Other
Totals - 3,180 -
2016 Capital Gains Tax Worksheet - Summary Listing
Asset Description Indexation Discountable Other Loss Net Cap Gain
Land Z - (2,370,000) - - -
Challenger Energy Ltd [100000] S - - - - -
Collection Records [100] C - (1,600) - - -
Lindsay Painting O - 3,180 - - 1,590 *
Rounding 20
* amount after discount applied. 1,590
Capital losses summary
Collectables Other
Losses brought forward from prior years - -
Current year losses 1,600 2,370,000
Losses applied - -
Losses carried forward to next year 1,600 2,370,000