Yes correct, though the 1st question is 45K gains for the year....

Yes correct, though the 1st question is 45K gains for the year. But mostly importantly (in eyes of ATO) question 2 & 3 are correct.

I was discussing this with a fellow shareholder yesterday. They were under the impression that the 40K profit is split in half and you only get taxed on 20K rather than the 40K under the 50% discount rules. Their way ultimately gets them the 20K in discount, compared to doing it the ATO way which only gives them 4K. Kept telling them, the ATO always wins, but they didn't want to listen as they feel as they are the ones being ripped off. Welcome to the real world mate

Their procedure was 40K split into 20K, 20K + 5K = 25K gains, minus 7K = 18K net gains, minus 30K carried forward = -12K
1) 25K
2) 0
3) -12K

Even if the investor didn't have 30K in carried forward losses, the discount gain amount is 19K, rather than the 50% 20K.

I hope others out there are not doing their own tax returns and dodging the ATO thinking the same thing as my fellow shareholder. I suppose it is a genuine mistake to make, and if you show calculations to the ATO, you might just get a warning. But its better to be right than not.