Income Tax Assessment Act 1997
Indexation is only relevant if the *cost base of a *CGT asset is relevant to a *CGT event.
The table in section 110-10 sets out the CGT events for which cost base is not relevant.
Indexation is not relevant to the reduced cost base of a CGT asset.Indexation for some entities only if indexation chosen 114-5(2)
Indexation is not relevant to the *capital gain of an entity mentioned in an item of the table from a *CGT event happening after 11.45 am (by legal time in the Australian Capital Territory) on 21 September 1999, unless the relevant entity mentioned in that item has chosen that the *cost base include indexation:
|Entities for which indexation is not relevant unless chosen|
|Item||Indexation is not relevant to the capital gain of this entity:||Unless this entity has chosen that the cost base include indexation:|
|1||An individual||The individual|
|2||A *complying superannuation entity||The trustee of the complying superannuation entity|
|3||A trust||The trustee of the trust|
|4||A listed investment company||The company|
Indexation is not relevant to the *capital gain of a *life insurance company from a *CGT event happening after 30 June 2000 in respect of a *CGT asset that is a *complying superannuation asset unless the company has chosen that the *cost base include indexation.
Section 114-5 of the Income Tax (Transitional Provisions) Act 1997 provides that indexation is not relevant to the capital gain of a life insurance company or registered organisation from a CGT event after 11.45 am on 21 September 1999 and before 1 July 2000 unless the company or organisation chooses it.