Tax-deferred and tax-free amounts

Tax-exempted amounts do not affect your cost base and reduced cost base.

However, if your statement shows any tax-deferred or tax-free amounts, you adjust the cost base and reduced cost base as follows:

  • cost base – deduct the tax-deferred amounts from the cost base
  • reduced cost base – add the tax-deferred amounts and the tax-free amounts and deduct the total from the reduced cost base.

Before 1 July 2001, a payment of an amount associated with building allowances was treated as a tax-free amount. Payments on or after that date are treated as tax-deferred amounts.

A CGT-concession amount received before 1 July 2001 was treated in the same way as a tax-deferred amount. However, from this date, CGT-concession amounts no longer require a cost base or reduced cost base adjustment.

    Last modified: 21 Jun 2016QC 17167