In this article, you will learn how to assess, record, and process Div 296 cost base adjustments in Class:
- Overview
- Reports
- Step 1: Record Div 296 cost base adjustment decision
- Step 2: Process Div 296 cost base adjustment
- Field Descriptions
- Troubleshooting
- Additional Considerations
Overview
- A Div 296 cost base adjustment can be applied as at 30 June 2026
- The election applies to all CGT assets in the fund
- Partial selection is not available
- Standard CGT cost base
- Div 296 adjusted cost base
- Record the decision
- Process the adjustment after FY2026 Tax Finalisation is complete
The election must be made by the due date of the FY2027 tax return. Once executed by the trustees, the decision is irrevocable.
Reports
- Div 296 Cost Base Adjustment Analysis Report
Review the estimated capital gain/loss position at 30 June 2026 - Div 296 Cost Base Adjustment Minute/Resolution
Documents the trustee's decision
The ATO will release a prescribed form at a later date. Once available, Class will support this form and pre-populate it with the recorded decision. This form does not need to be lodged with the ATO.
Step 1: Record Div 296 cost base adjustment decision
Navigate to Fund Level > Periodic Processing > Div 296 cost base adjust
- Default is No for all funds
- Select Yes to elect, then Save
- This step records the intention only and does not process the adjustment.
Step 2: Process Div 296 cost base adjustment
- Review the calculated capital gain/loss for holdings and parcels
- You can manually enter a capital gain/loss for a Custom Holding accounts by selecting Edit. This part is optional as this number is not carried forward. It is only used to populate the overall capital gain/loss position.
- Click Submit to process the Div 296 cost base adjustment
Tax Finalisation for FY2026 must be run before the Submit option is enabled. This ensures all processing is complete prior to processing the Div 296 cost base adjustment.
Field Descriptions
- Code: Holding code of the investment
- Price Valuation Date: Date of the market valuation (available after Period Update)
- Gross Capital Gain/(Loss): Total gross capital gain or loss for the holding account
- Parcel Date: Purchase date of the parcel
- Accounting Cost Base: Accounting cost base for the parcel
- Cost Base: Tax cost base (reduced cost base where a loss applies)
- Market Value: Market value for the investment
- Gross Capital Gain/ (Loss): Market value minus the Tax cost base
- Total Gain/ (Loss): Total gain or loss for all CGT assets
-
Submit or Delete: To submit or delete the Div 296 cost base adjustment. Once FY2027 Tax Finalisation is complete you can't edit this screen.
Troubleshooting
You may encounter errors when opening the Div 296 cost base adjust page, these need to be resolved before the page will load correctly.
Errors relating to parcel match or negative quantities need to be resolved first before you can view Div 296 cost base adjustment information for parcels.
| Error | Action required |
| Failed to load due to technical issues. Please try again later. | contact support |
| A disposal of XX units of YYY on dd/mm/yyyy cannot be matched due to insufficient holding | refer to this article |
| Other errors | refer to this article |
Additional Considerations
- Modified events: If events are recorded after the Period Update for FY2026 has been run, these changes are not reflected in the Div 296 cost base adjustment
- Custom Holding accounts: Capital gains/losses are not automatically tracked. You can enter a Div 296 capital gain/loss manually under the Realised Accounting Gain event (available from end of July 2026)
- Property accounts: Where the setting Adjust Valuation by Accumulated Depreciation, the unadjusted value of the property is used as the Div 296 cost base adjustment
- Corporate action processing - For Funds that are processing Div 296 cost base adjustments we recommend not processing corporate actions from 1 July 2026 yet, until we've completed updates to prevent needing to roll back corporate actions later.