The time a CGT asset is acquired is important for four reasons:
- CGT generally does not apply to assets acquired before 20 September 1985 (pre-CGT assets)
- different cost base rules apply to assets acquired at different times – for example, non-capital costs are not included in the cost base of an asset acquired before 21 August 1991
- it determines whether the cost base can be indexed for inflation and the extent of that indexation (see chapter 2), and
- it determines whether you are eligible for the CGT discount – for example, one requirement is that you need to have owned a CGT asset for at least 12 months (see chapter 2).