Tax Laws Amendment (2004 Measures No. 1) Act 2004 (95 of 2004)

Schedule 5   Net input tax credits and capital gains tax

Income Tax Assessment Act 1997

3   At the end of Division 103


103-30 Reduction of cost base etc. by net input tax credits

Reduce the *cost base and *reduced cost base of a *CGT asset, and any other amount that could be involved in the calculation of an entity's *capital gain or *capital loss, by the amount of any *net input tax credit of the entity in relation to that amount.

Example: The other amount could be expenditure in the case of some CGT events (see, for example, CGT event D1).

Note: Subsection 116-20(5) deals with the effect of net GST on supplies for the purposes of capital proceeds.