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Indexation of the cost base

Last updated 5 October 2009

If a CGT event happened in the 2001-02 income year in relation to a CGT asset you acquired before 21 September 1999, you may be able to use either the indexation method or the discount method to calculate your capital gain.

If you use the indexation method, some of the cost base expenditure you incurred up to 21 September 1999 may be indexed to account for inflation up to the September 1999 quarter. Only expenditure incurred before 21 September 1999 may be indexed because changes to the law mean indexation was frozen at that date. Refer to chapter 2-The indexation method for more information.