The other method is the simplest of the three methods for calculating a capital gain. You must use this method to calculate the capital gain if your client has bought and sold their asset within 12 months or, generally, for capital gains tax (CGT) events that do not involve an asset. In these cases, the indexation and discount methods do not apply.
Generally, to use the other method, you simply subtract your cost base (what the asset cost you) from your capital proceeds (how much you sold it for). The amount of proceeds left is your client’s capital gain. For some types of CGT event a cost base is not relevant. In these cases, the rules of the particular CGT event explain the amounts to use.