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 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;
114-5(3)
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 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;
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 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.
114-5(3)
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 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 chooses that the cost base includes indexation.
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