Tax Laws Amendment (2006 Measures No. 1) Act 2006 (32 of 2006)

Schedule 2   Business related costs

Part 2   CGT amendments

Income Tax Assessment Act 1997

36   Subsection 110-25(5)

Repeal the subsection (including the note), substitute:

(5) The fourth element is capital expenditure you incurred:

(a) the purpose or the expected effect of which is to increase or preserve the asset's value; or

(b) that relates to installing or moving the asset.

The expenditure can include giving property: see section 103-5.

Note: There are 3 situations involving leases in which this element is modified: see section 112-80.

(5A) Subsection (5) does not apply to capital expenditure incurred in relation to goodwill.