Introduction
The CGT Register will help you run a health check for all investments held by the fund and provide a screen for users to make cost base adjustments between parcels where necessary.
Navigation
| Navigate to Accounting from the Main Toolbar |  |
| Select CGT register |  |
Instructions
The system will detect automatically if there are any abnormalities with the cost base of investments.
If no abnormalities are detected, then the CGT Register page will display the message below.
If detected, a warning message will display.
Select Open CGT Health Check to make any adjustments to the cost base.
Scenarios
Scenario 1: Units on hand with a negative cost base
In this example, an SMSF holds two parcels of BHP Shares, Parcel 1 of 10 units with a total cost base of $50, and Parcel 2 of 15 units with a total cost base of $70. The fund later received a return of capital of $60.
The cost base was incorrectly allocated as shown in the Unrealised Capital Gains - Detailed Report , where the cost base of Parcel 1 was wrongly reduced to -$10.
Solution:
1. Select Open CGT Health Check. On the page prompted, select Allocate beside the investment to edit
This will open up the parcel details for the investment.
2. Hover the cursor under Allocated Amount Column. Locate the parcel with a wrong cost base (e.g. the parcel with a negative cost base) and enter an appropriate amount to adjust the balance (e.g. $10 to bring the Balance to $0).
As the reminder indicates, the total Allocated Amount needs to be 0 after all adjustments.
3. Further adjust the cost base of other parcels of the investment(e.g. enter a -$10 for the other parcel), so that the total Allocated Amount returns to 0 and the total Balance remains unchanged.
4. Users can proceed to other investments where applicable or select Process.
5. The system would prompt a message for users to further review the changes to be made. Select Process to confirm.
6. Upon confirmation, the system would return to the CGT Register, where the warning message would now be replaced by a confirmation message, provided there are no other investments with a wrong cost base to adjust.
The system would process a transaction journal below for the cost base adjustment as of 30 June in the current financial year, with the transaction description as CGT Cost Base adjustment.
Note neither units nor amounts are editable.
Scenario 2: A 0-unit parcel with a remaining cost either negative or positive.
In this example, an SMSF holds two parcels of ANZ Shares, Parcel 1 of 5 units with a total cost base of $51, and Parcel 2 of 4 units with a total cost base of $39. Parcel 1 was later fully disposed of.
After the disposal, Parcel 1 was incorrect with a cost base of $50, whereas Parcel 2 with $40 instead of $39, as shown in the Unrealised Capital Gains - Detailed Report below.
Solution:
1. Select Open CGT Health Check. Select Allocate beside the investment:
This will open up the parcel details for the investment.
2. Hover the cursor to the Allocated Amount column and click on the field where the corresponding unit is 0. The system will automatically populate an amount to offset the Remaining Cost Base. (e.g. $1 here to offset the -$1)
Note this feature only applies where the unit is 0.
Proceed with Enter or Tab on the keyboard to activate the auto-filled amount.
Note placing the cursor away alone will return the field back to 0.
3. Adjust other fields under the Allocated Amount column until the total Allocated Amount returns to 0.
4. Select Process from the bottom right of the screen to finalise.
5. The system would prompt a message for users to further review the changes to be made. Select Process to confirm.
6. Upon confirmation, the system would return to the CGT Register page, where the warning message would now be replaced by a confirmation message, provided there are no other investments with the wrong cost base to adjust.
The system would process a transaction journal below for the cost base adjustment as of 30 June in the current financial year, with the transaction description as CGT Cost Base adjustment.
Similarly, neither units nor amounts are editable.
FAQ
Q1. I got a warning message for some of the parcels: CGT events after the current financial year have been detected. How should I proceed?
Answer:
- If the CGT events were in a financial year where the tax return / financial reports were already finalised and audited, then it is advised NOT to re-save or reprocess these CGT events
- If these CGT events are in the current financial year (where the fund has not been audited), then users may re-save or reprocess these CGT events to reflect the correct cost base.
Q2. Can I revert any adjustments that have been posted?
Answer: Users can revert adjustments by deleting transactions for the cost base adjustment from the transaction list. In the case where a posted adjustment is locked due to future CGT events, user can return to the CGT Health Check screen to allocate the adjustment to a different parcel.
Q3. Can I use this CGT Health Check Screen if I have FULLY disposed of an investment, but there is a remaining accounting cost of either positive or negative?
Answer: In this case, there will Not a warning message from the CGT Health Check Screen. Please refer to the article accounting cost remains after a full disposal.
Please note BGL does not provide any tax advice.