Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (49 of 2026)

Schedule 1   CGT adjustments

Part 1   Main amendments

Income Tax Assessment Act 1997

15   Subsection 114-5(2)

Omit all of the words before the table (including the heading), substitute:

Indexation for some entities only if indexation chosen

(2) Indexation is not relevant for the purposes of working out under subsection 110-36(1):

(a) the *cost base of a *CGT asset; and

(b) the *capital gain of an entity mentioned in an item of the table from a *CGT event happening in relation to the CGT asset after 11.45 am (by legal time in the Australian Capital Territory) on 21 September 1999;

unless the relevant entity mentioned in that item chooses that the cost base includes indexation.