INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 112 - Modifications to cost base and reduced cost base  

Subdivision 112-B - Finding tables for special rules  

SECTION 112-97   112-97   Modifications outside this Part and Part 3-3  


This table sets out other cost base modifications outside this Part and Part 3-3.

Provisions of the Income Tax Assessment Act 1936 are in bold .


Modifications outside this Part and Part 3-3
Item In this situation: Element affected: See:
1A You receive, under a *farm-in farm-out arrangement, an *exploration benefit or an entitlement to an exploration benefit First element of cost base and reduced cost base Section 40-1120
1 You stop holding an item as trading stock First element of cost base and reduced cost base Paragraph 70-110(1)(b)
.
2 CGT event happens to Cocos (Keeling) Islands asset First element of cost base and reduced cost base subsection 102-25(1) of the Income Tax (Transitional Provisions) Act 1997
.
2AA (Repealed by No 20 of 2016)
.
2A Lender acquires a replacement security First element of cost base and reduced cost base subsection 26BC(6B)
.
3 CGT event happens by the borrower disposing of the borrowed security to a third party First element of cost base and reduced cost base paragraph 26BC(9)(a)
.
4 CGT event happens to replacement security and compensatory payment was incurred by the borrower Second element of cost base and reduced cost base subsection 26BC(9A)
.
5 CGT event happens to CGT asset in connection with the demutualisation of an insurance company except a friendly society health or life insurer First element of cost base and reduced cost base section 121AS
.
5A CGT event happens to CGT asset in connection with the demutualisation of a mutual entity other than an insurance company, health insurer and friendly society health or life insurer First element of cost base and reduced cost base Division 326 in Schedule 2H
.
6 CGT event happens to assets of NSW State Bank First element of cost base and reduced cost base section 121EN
.
7 Trust ceases to be a resident trust for CGT purposes and there is an attributable taxpayer The total cost base and reduced cost base section 102AAZBA
.
8 You own shares in a company that stops being a PDF First element of cost base and reduced cost base section 124ZR
.
9 (Repealed by No 23 of 2018)
.
10 CGT event happens to CGT asset used in gold mining First element of cost base and reduced cost base section 112-100 of the Income Tax (Transitional Provisions) Act 1997
.
11 (Repealed by No 101 of 2006 )
.
12 Shares in a holding company are cancelled The total cost base and reduced cost base section 159GZZZH
.
12A (Repealed by No 4 of 2018)
.
12B Entity has interest in loss company immediately before alteration time The total reduced cost base sections 165-115ZA and 165-115ZB
.
13 CGT event happens to 30 June 1988 asset of a complying superannuation entity First element of cost base and reduced cost base section 295-85 of the Income Tax (Transitional Provisions) Act 1997
.
14 CGT event happens to CGT asset of complying superannuation fund, complying approved deposit fund or pooled superannuation trust First element of cost base and reduced cost base section 295-100 of the Income Tax (Transitional Provisions) Act 1997
.
15 A CGT asset of a CFC is taken into account in calculating its attributable income First element of cost base and reduced cost base section 412
.
16 A CGT asset of a CFC is taken into account in calculating its attributable income First element of cost base and reduced cost base subsection 413(2)
.
17 A CGT asset of a CFC is taken into account in calculating its attributable income First element of cost base and reduced cost base subsection 413(3)
.
18 A CGT asset of a CFC is taken into account in calculating its attributable income First element of cost base and reduced cost base section 414
.
18A You cease to hold a registered emissions unit as the result of an outgoing international transfer of a Kyoto unit First element of cost base and reduced cost base Section 420-35
.
19 A commercial debt is forgiven The total cost base and reduced cost base of certain CGT assets of the debtor sections 245-175 to 245-190
.
20 A tax exempt entity becomes taxable First element of cost base and reduced cost base section 57-25 in Schedule 2D
.
20A An entity becomes or ceases to be a foreign hybrid The total cost base and reduced cost base Sections 830-80 and 830-85
.
21 A CGT asset is transferred to or from a life insurance company ' s complying superannuation asset pool First element of cost base and reduced cost base subsection 320-200(2)
.
22 A CGT asset is transferred to or from the segregated exempt assets of a life insurance company First element of cost base and reduced cost base subsection 320-255(2)
.
22A A CGT event happens in relation to forestry interest in a forestry managed investment scheme for a subsequent participant The total cost base and reduced cost base Subsection 394-30(9)
.
22B You start or cease to have a *Division 230 financial arrangement as consideration for the acquisition of a thing All elements of cost base and reduced cost base section 230-505
.
23 The arrangement period for the tax preferred use of an asset ends The total cost base and reduced cost base subsection 250-285(3)
24 An entity becomes a subsidiary member of a consolidated group The total cost base and reduced cost base for the head company of the subsidiary ' s assets Section 701-10
24A An entity ceases to be a subsidiary member of a consolidated group The total cost base and reduced cost base for the head company of membership interests in the subsidiary Section 701-15
24B An entity ceases to be a subsidiary member of a consolidated group The total cost base and reduced cost base for the head company of liabilities owed by the subsidiary Section 701-20
24C An entity ceases to be a subsidiary member of a consolidated group and an asset becomes an asset of the entity because the single entity rule ceases to apply The total cost base and reduced cost base for the entity of a liability owed to the entity Section 701-45
24D 2 or more entities cease to be subsidiary members of a consolidated group The total cost base and reduced cost base of the membership interests that one subsidiary member holds in another Section 701-50
24E Determining an asset ' s tax cost setting amount The total cost base and reduced cost base of the asset Section 701-55
24F Eligible tier-1 company ceases to be a subsidiary member of a MEC group or a CGT event happens to a pooled interest in the company The total cost base and reduced cost base Section 719-565
.
24 (Repealed by No 41 of 2005)
.
25 You make a forex realisation gain as a result of forex realisation event 4, and: total cost base and reduced cost base section 775-70
(a) you incurred the obligation to pay foreign currency:
(i) in return for the acquisition of a CGT asset; or
(ii) as the second, third, fourth or fifth element of the cost base of a CGT asset; and
(b) the foreign currency became due for payment within 12 months after the time when:
(i) in the case of the acquisition of a CGT asset - you acquired the CGT asset; or
(ii) in the case of the second, third, fourth or fifth element of the cost base of a CGT asset - you incurred the relevant expenditure
.
26 You make a forex realisation loss as a result of forex realisation event 4, and: total cost base and reduced cost base section 775-75
(a) you incurred the obligation to pay foreign currency:
(i) in return for the acquisition of a CGT asset; or
(ii) as the second, third, fourth or fifth element of the cost base of a CGT asset; and
(b) the foreign currency became due for payment within 12 months after the time when:
(i) in the case of the acquisition of a CGT asset - you acquired the CGT asset; or
(ii) in the case of the second, third, fourth or fifth element of the cost base of a CGT asset - you incurred the relevant expenditure
.
27 You acquire foreign currency as a result of forex realisation event 2 first element of cost base and reduced cost base section 775-125
28 On 10 May 2005, a foreign resident holds certain membership interests first element of *cost base and *reduced cost base subsection 855-25(3)
29 You are issued with an asset under a demutualisation of a health insurer except a friendly society health or life insurer First element of cost base and reduced cost base sections 315-80, 315-210 and 315-260
30 You are transferred an asset by a lost policy holders trust under a demutualisation of a health insurer except a friendly society health or life insurer First element of cost base and reduced cost base sections 315-145, 315-210 and 315-260
30A A CGT event occurs under a demutualisation of a friendly society health or life insurer and the capital proceeds from the event include money All elements of cost base section 316-60
30B You are issued with an asset under a demutualisation of a friendly society health or life insurer First element of cost base and reduced cost base section 316-105
30C A CGT event happens to an interest in a lost policy holders trust and the capital proceeds from the event include money All elements of cost base section 316-165
30D You are transferred a share, or right to acquire shares, by a lost policy holders trust under a demutualisation of a friendly society health or life insurer The total cost base and reduced cost base section 316-170
31 An entitlement arises under Division 2AA of Part II of the Banking Act 1959 in connection with an account holder ' s account with an ADI The total cost base, and reduced cost base, of the entitlement and of the remainder (if any) of the right to be paid by the ADI in connection with the account Section 253-15
32 You acquire an *ESS interest and Subdivision 83A-B or 83A-C (about employee share schemes) applies to the interest First element of cost base and reduced cost base sections 83A-30 and 83A-125
33 An entity chooses a roll-over under Subdivision 310-D and the entity chooses section 310-55 to apply to assets First element of cost base and reduced cost base section 310-55
34 An entity chooses a roll-over under Subdivision 310-D, but the entity does not choose section 310-55 to apply to assets First element of cost base and reduced cost base section 310-60
35 A CGT asset is held by a company that has ownership not significantly different from that of a former body that held the asset and was incorporated under another law First element of cost base and reduced cost base Section 620-25
36 An entity chooses an asset roll-over, or chooses to transfer a loss and chooses an asset roll-over, under Subdivision 311-B First element of cost base and reduced cost base Section 311-45
37 The issuing of a share gives rise to an entitlement to a tax offset under Subdivision 360-A First element of cost base and reduced cost base Sections 360-50, 360-55, 360-60 and 360-65


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