This article walks you through the complete CGT workflow in ChangeGPS — from entering client and asset details through to generating the final CGT advice report. The Capital Gains Tax (CGT) app uses a five-step wizard covering client and asset setup, financial details, eligibility assessment, scenario modelling, and report generation.
Before you begin
Before starting a CGT calculation, make sure you have the following information available:
The client's name and the entity type through which they hold the asset (Individual, Company, or Trust)
The name and type of the asset being disposed of
The names and ownership percentages of all stakeholders
Whether any stakeholders have previously claimed the Retirement Exemption, and how much of their $500,000 lifetime limit has been used
The original cost base of the asset and all associated costs
The sale price and disposal date
The acquisition date
Whether there are connected entities whose net assets or turnover need to be aggregated for the Size Tests
Any capital losses available to apply against the gain
Step-by-step guide
Step 1 — Client, Asset & Stakeholders
Navigate to the CGT app. Please go to Access > Apps > ChangeGPS CGT > select + New CGT Calculation.
Enter the Client Name or select Import from CIM to search for an existing client.
Enter the Asset Name and an optional Asset Description select the Asset Type (for example, Underlying Business Asset, Investment Property, or Shares in a Small Business Company).
Select the Entity Type — Individual, Company, or Trust. This determines which Size Tests and concessions are assessed.
Select a Company Tax Rate.
In the Stakeholders table, select Add Stakeholder and enter each stakeholder's name, role (as determined by the entity type), and ownership percentage.
For each stakeholder, enter their Prior Retirement Exemption Claims — the total amount they have previously claimed under the Retirement Exemption. The app calculates their remaining lifetime limit ($500,000 maximum) automatically.
Select Next to proceed to Step 2.
Step 2 — Financials
Enter the Cost Base — the original purchase price plus all associated costs (stamp duty, legal fees, capital improvements).
Enter the Sale Price — the proceeds received on disposal.
Enter the Acquisition Date (the date the asset was purchased or acquired).
Enter the Sale Date (the date the asset was sold or disposed of).
Enter any Capital Losses available to apply against the gain. The default is $0.
The Capital Gain is calculated automatically in real time and displayed below the financial fields. It updates instantly as you change any of the values above.
If the asset is an underlying asset (such as a business sold as a group of assets), expand the Asset Component Breakdown section and enter each component separately — for example, Land, Buildings, Plant and Equipment, Goodwill, and Other. Each component can have its own cost base and tax treatment.
If the client has connected entities whose net assets or turnover must be aggregated for the Size Tests (the $6 million Net Asset Value Test or the $2 million Turnover Test), add them in the Connected Entities section.
Select Next to proceed to Step 3.
Note: If the asset was acquired before 20 September 1985, the app will flag it as a potential pre-CGT asset that may be exempt from capital gains tax.
Step 3 — Eligibility
The Eligibility step assesses whether the client meets the requirements for the Small Business CGT Concessions under ITAA 1997 Division 152. The questionnaire is divided into sections that are shown or hidden based on the asset type and your answers.
Size Tests — Answer whether the client passes either the $6 million Net Asset Value Test or the $2 million Aggregated Turnover Test. The app uses the connected entities data from Step 2 to calculate aggregated values.
Active Asset Test — Confirm whether the asset is an active asset and whether it has been an active asset for the required period (either 7.5 years for long-held assets or half the ownership period for assets held less than 15 years). The Active Asset Period Calculator helps you determine the qualifying period.
15-Year Exemption — If the asset has been held for at least 15 years, answer the questions about whether a Significant Individual exists, and whether they are retiring or permanently incapacitated.
Roll-over Intentions — Indicate whether the client intends to apply for Roll-over Relief and, if so, whether they plan to replace the asset or contribute the proceeds to superannuation.
As you answer each question, the Eligibility Summary panel updates to show which concessions are available, partially available, or not available based on your answers.
Select Next to proceed to Step 4.
Step 4 — Scenarios
If this is your first scenario, select from the Scenario Templates to apply a pre-built concession combination based on the asset type. Templates are generated based on the available concessions identified in Step 3.
Use the Smart Suggestions panel to see which concession combinations are recommended based on the eligibility assessment.
Each scenario shows the concessions applied, the calculated taxable gain after concessions, and the estimated tax saving per stakeholder.
To add a custom scenario, select Add Scenario, give it a name, and select the concessions to apply.
View the Timeline Visualisation to verify the ownership period and active asset period for 15-Year and Active Asset test calculations.
Mark your preferred scenario as Recommended using the star icon.
Select Next to proceed to Step 5.
Step 5 — Reports
Review the completed CGT advice report in the preview panel.
Select Export PDF to download the report as a PDF, or Export Word to download as a Word document (.docx).
Use Present to share present the report directly to your client from within the CGT module (Press the Esc key on your keyboard to close the report).
Tips and best practices
Enter all connected entities in Step 2. The Size Tests assess the aggregated net asset value or turnover of the client and all connected entities. Missing connected entities may result in an incorrect Size Test result and the wrong concessions being assessed.
Check the Active Asset Period Calculator. For assets held more than 15 years, the Active Asset test requires the asset to have been active for at least 7.5 years — but for assets held less than 15 years, the requirement is half the ownership period. Use the calculator to confirm the qualifying period.
Track Retirement Exemption prior claims per stakeholder. Each individual has a lifetime Retirement Exemption limit of $500,000. Enter prior claims accurately in Step 1 to ensure the remaining limit is correctly calculated.
Use scenario templates as a starting point. The templates are generated based on the eligible concessions from Step 3 and cover the most common concession combinations. Start with a template, then customise as needed.
Common issues
The Size Test shows as failed but I believe the client qualifies. Check that all connected entities have been added in the Connected Entities section in Step 2. The $6 million Net Asset Value Test and the $2 million Turnover Test aggregate the values of the client entity and all entities connected or affiliated with it. If a connected entity is missing, the aggregated value may be overstated. Also confirm that the net asset values entered exclude assets used principally for personal use (such as a main residence) and superannuation assets.
The 15-Year Exemption is showing as not available. The 15-Year Exemption requires the asset to have been continuously owned for at least 15 years prior to disposal, and a Significant Individual must exist who is either retiring or permanently incapacitated. Check that the acquisition date in Step 2 is correct and that the eligibility questions about the Significant Individual in Step 3 have been answered as required.
The capital gain calculation is not matching my manual calculation. The real-time capital gain displayed in Step 2 is calculated as Sale Price minus Cost Base minus Capital Losses. Confirm that the cost base includes all eligible costs (acquisition costs, capital improvement costs, and incidental costs of disposal). If the asset was held for more than 12 months by an individual or trust, the 50% CGT discount is applied at the scenario level in Step 4 — not in the Step 2 capital gain calculation.
Need help?
If you are stuck or have questions about a specific CGT scenario, reach out through the chat widget or contact your account manager.