vilo options, page-48

from the ATO site

probably worth a further read

Indexation method
Discount method
'Other' method

Description of method
Allows you to increase the cost base by applying an indexation factor based on CPI up to September 1999.
Allows you to discount your capital gain (by 50% for individuals and trusts, and 33 1/3% for complying superannuation funds).
Basic method of subtracting the cost base from the capital proceeds.

When to use the method
Use for an asset held for 12 months or more if it produces a better result than the discount method. Use only for assets acquired before 21 September 1999.
Use for an asset held for 12 months or more if it produces a better result than the indexation method.
Use when the indexation and discount methods do not apply (for example, if you have bought and sold an asset within 12 months).

How to calculate your capital gain using the method
Apply the relevant indexation factor (see The indexation method of calculating your capital gain), then subtract the indexed cost base from the capital proceeds (see worked example for Val) (PDF, 76KB)
Subtract the cost base from the capital proceeds, deduct any capital losses, then reduce by the relevant discount percentage (see worked example for Val) (PDF, 76KB)
Subtract the cost base (or the amount specified by the relevant CGT event) from the capital proceeds (see worked example for Marie-Anne in The other method of calculating your capital gain).