Short answer
Navexa applies the standard Australian CGT discount method only.
We do not support pre-CGT exemptions or the indexation method. If you have pre-1985 or pre-1999 parcels, you can still track them in Navexa; however, the final tax outcome must be calculated outside Navexa with the assistance of your accountant.
Supported CGT method
Navexa supports the CGT discount method for assets held more than 12 months.
At a glance:
If the asset was held for 12 months or more, Navexa applies the relevant CGT discount.
If the asset was held for less than 12 months, no discount is applied.
The standard discounts are:
Individuals and trusts: 50 per cent discount
Complying super funds: 33.33 per cent discount
Navexa checks the 12-month rule for each parcel and applies the correct discount automatically based on your entity type settings.
This is the method used by the majority of Australian investors under the current rules.
What Navexa does not support
Navexa does not support:
Pre CGT exemptions for assets acquired before 20 September 1985
Indexation method for assets acquired before 21 September 1999
If you use indexation or have pre-CGT assets, Navexa will not be able to calculate the final tax outcome for those parcels on its own.
Why we focus on the discount method
We have focused the Navexa calculation engine on the current CGT rules used by most investors.
Building and maintaining full indexation and pre-CGT logic would:
Add significant complexity for a small and shrinking number of cases
Increase the risk of confusion or errors for the majority of users
Take development time away from improving tools that help most investors
Instead, we support the discount method and provide a clear way to handle older parcels with your accountant.
If you have pre-1999 or pre-1985 parcels
You can and should still record these investments in Navexa so your performance and history are complete.
If you have:
Pre CGT assets (acquired before 20 September 1985), or
Indexation era assets (acquired before 21 September 1999)
We suggest:
Record the trades in Navexa
Enter or import your buys and sells as normal so your portfolio performance, income and history are accurate.Add a note to the relevant parcel or sale
Use a note or comment to flag that the tax outcome for this parcel needs to be calculated outside Navexa.Export your reports for your accountant
Export your CGT and Trades reports. Work with your accountant to apply pre-CGT or indexation rules where they apply.
Typical treatment (for your accountant to confirm):
Pre CGT disposals: gains are generally disregarded.
Indexation era assets: your accountant can choose between indexation or the discount method, depending on your situation.
When you lodge your tax return, you should rely on your accountant’s figures for these specific parcels. Navexa reports will not reflect the correct exemption or indexation outcome for them.
Key dates to remember
For Australian CGT:
Before 20 September 1985: Pre-CGT period
Up to 21 September 1999: Indexation era
From 21 September 1999: Discount method era
Navexa fully supports the discount method era. For earlier periods, you track the investments in Navexa and work with your accountant to finalise the tax outcome.
Summary
Navexa supports the standard CGT discount method and applies it automatically when the 12-month rule is met.
Pre-CGT and indexation era calculations are not supported.
You should still track those investments in Navexa, then work with your accountant to apply the correct treatment at tax time.