Income tax: capital gains: what is the improvement threshold for the 2008-09 income year under section 108-85 of the Income Tax Assessment Act 1997?
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Date of effect
Commissioner of Taxation
21 May 2008
Appendix 1 - Explanation
|This Appendix is provided as information to help you understand how the Commissioner's view has been reached. It does not form part of the binding public ruling.|
4. The improvement threshold is determined for the purposes of section 108-70 of the Income Tax Assessment Act 1997 (ITAA 1997) (about when a capital improvement to a pre-CGT asset is a separate asset) and section 108-75 of the ITAA 1997 (about capital improvements to CGT assets for which a rollover may be available).
5. Subsection 108-85(2) of the ITAA 1997 provides that the improvement threshold must be indexed annually. Subdivision 960-M of the ITAA 1997 (about indexation) provides guidance on how to index the amounts and how to calculate the indexation factor - see sections 960-270 and 960-275 of the ITAA 1997.
Not previously issued as a draft
CGT separate assets
separate CGT asset