Assets acquired after 13 May 1997


This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

If you acquired a CGT asset after 13 May 1997, the cost base of the asset does not include:

  • any expenditure on the asset that has been (or can be) allowed as an income tax deduction; this applies to all elements of the cost base, or
  • heritage conservation expenditure and landcare and water facilities expenditure incurred after 12 November 1998 that give rise to a tax offset.


Special rules for land

Special rules apply if you acquired land on or before 13 May 1997 but you incurred expenditure between this date and 1 July 1999 on constructing a building that is treated as a separate asset from the land for CGT purposes. If you think this may be relevant to you, contact the Australian Taxation Office (ATO) for more information.


Special building write-off deduction

Zoran acquired a rental property on 1 July 1997 for $200,000. Before disposing of the property on 30 June 2002, he had claimed $10,000 in special building write-off deductions.

At the time of disposal, the cost base of the property was $210,250. Zoran must reduce the cost base of the property by $10,000 to $200,250.

Last modified: 06 Oct 2009QC 27417