Indexation of the cost base



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End of attention

The cost base of an asset is indexed for inflation and only the amount of the consideration that is more than the indexed cost base is treated as a capital gain. Generally, an asset must be held for 12 months before indexation applies.

Indexation factor

The indexation factor used is the same as that normally used under the capital gains tax provisions - the consumer price index. This index is published in the Guide to capital gain tax, appendix 2. You can obtain it from the Australian Bureau of Statistics in your capital city or from any tax office.

Last modified: 05 Dec 2006QC 17522