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GST input tax credits

Last updated 3 March 2016

The government has introduced legislation into parliament to ensure that GST net input tax credits are excluded from the cost base, reduced cost base and other relevant amounts used for the purposes of working out the amount of a capital gain or capital loss. The amendments will apply to CGT events that happen after 19 February 2004. (The existing law provides for input tax credits to be excluded only from the first, second and third elements of the cost base of assets acquired after 7.30pm – by legal time in the ACT – on 13 May 1997.)

If you have excluded certain GST input tax credits when calculating a capital gain or capital loss for a CGT event which happened on or before 19 February 2004, you may be entitled to apply for an amended assessment – refer to Draft Taxation Determination TD 2004/D3 Income tax: capital gains: are input tax credits excluded from a CGT asset's cost base and reduced cost base worked out under sections 110-25 and 110-55 of the Income Tax Assessment Act and from other equivalent amounts used in working out a capital gain or loss? and other information on our website at