Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-1
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CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Division 114
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Indexation of cost base
SECTION 114-5
When indexation relevant
114-5(1)
Indexation is only relevant if the * cost base of a * CGT asset is relevant to a * CGT event.
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:
114-5(3)
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.
View history note
Hide history noteIndexation is only relevant if the * cost base of a * CGT asset is relevant to a * CGT event.
Note 1:
The table in section 110-10 sets out the CGT events for which cost base is not relevant.
Note 2:
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 |
114-5(3)
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.
Note:
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.
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