Navexa currently supports the Australian capital gains tax (CGT) discount method. This article explains what Navexa calculates and when an older asset may need to be reviewed outside Navexa.
The Supported CGT Method
Navexa currently supports the CGT discount method for eligible assets that meet the Australian Taxation Office’s 12-month ownership requirement.
Under the current rules:
Eligible individuals and trusts may receive a 50% CGT discount.
Eligible complying super funds may receive a 33.33% CGT discount.
Companies are generally not eligible for the CGT discount.
Navexa checks each parcel’s acquisition and disposal dates and applies the relevant treatment based on the entity type recorded in your portfolio settings.
A parcel is a specific quantity of an investment acquired in one transaction.
Calculation And Parcel Methods
The CGT discount method is different from the sale allocation methods available in Navexa.
Sale allocation methods determine which purchase parcels Navexa matches to a disposal. These include FIFO, LIFO, Maximise Gain, Minimise Gain and Minimise CGT.
After selecting the relevant parcels, Navexa applies the supported CGT calculation rules to determine the estimated gain or loss.
For more detail about parcel selection, see Introduction: Tax Strategies and Capital Gains Tax Settings.
Methods Not Currently Supported
Navexa does not currently calculate:
Pre-CGT treatment for assets acquired before 20 September 1985.
The legacy indexation method for eligible assets acquired before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.
The legacy indexation method adjusts an eligible asset’s cost base for inflation.
Where available, the discount or legacy indexation method may produce different results. The appropriate treatment depends on factors including the asset, taxpayer, acquisition date and available capital losses.
If either of these older treatments applies, Navexa’s CGT report will not calculate the final tax outcome for the affected parcels.
Tracking Older Assets
You can still record older assets in Navexa to maintain your portfolio history, performance and income records.
For an affected asset:
Enter or import the complete transaction history in Navexa.
Add a note identifying any parcel that may require pre-CGT or legacy indexation treatment.
Export your Capital Gains Tax report and the affected transaction data.
Ask your accountant or registered tax agent to review the affected parcels and apply any required adjustments outside Navexa.
For export instructions, see Creating A Capital Gains Tax Report and How to Use the Transactions Page in Navexa.
Pre-CGT assets are often treated differently from assets acquired after CGT began. However, exceptions and special rules can apply. Your accountant or registered tax agent can determine the treatment for your circumstances.
Upcoming 2027 Changes
Australia has legislated separate CGT changes that generally apply to affected gains accruing from 1 July 2027.
The “legacy indexation method” described in this article refers only to the rules for eligible assets acquired before 11.45 am on 21 September 1999. It is different from the indexation rules legislated for affected gains accruing from 1 July 2027.
Navexa will update its Australian tax reporting tools to support the new rules. Until those changes take effect, Navexa’s reports continue to use the current supported CGT rules.
Remember, this is general information, not personal financial advice.