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

17   Subsection 114-10(1)

Repeal the subsection, substitute:

(1) You only index expenditure in the *cost base of a *CGT asset because of subsection 110-36(1A) or (1) for a *CGT event happening in relation to the asset if you, or the entity whose cost base is being worked out, had *acquired the asset at least 12 months before the time of the CGT event.

Note: Generally, expenditure is indexed from when it is incurred: see subsection 960-275(1B) or (2). The exception is when there is an acquisition that did not result from a CGT event. The first element in this case is indexed from when the expenditure was paid: see subsection 960-275(1C) or (3).