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Time of acquisition

Last updated 3 March 2016

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).