Taxation Determination

TD 2006/41

Income tax: capital gains: what is the improvement threshold for the 2006-2007 income year under section 108-85 of the Income Tax Assessment Act 1997?

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FOI status:

Exclamation This Ruling provides you with the following level of protection:

This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953. A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. If you rely on this ruling, we must apply the law to you in the way set out in the ruling (or in a way that is more favourable for you if we are satisfied that the ruling is incorrect and disadvantages you, and we are not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.


1. For the 2006-2007 income year, the improvement threshold is $112,512.

Date of effect

2. This Determination applies for the 2006-2007 income year.

Commissioner of Taxation
31 May 2006

Appendix 1 - Explanation

Exclamation 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.


3. 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).

4. The improvement threshold is required by subsection 108-85(2) of the ITAA 1997 to be indexed annually in accordance with Subdivision 960-M of the ITAA 1997.

5. This Determination is published before the 2006-2007 financial year begins, as required by subsection 108-85(3) of the ITAA 1997.

Not previously issued as a draft


ATO references:
NO 2004/6081

Previous Rulings/Determinations:
TD 94/56
TD 95/23
TD 96/30
TD 97/12
TD 98/13
TD 1999/29
TD 2000/25
TD 2001/12
TD 2002/12
TD 2003/13
TD 2004/15
TD 2005/20

ISSN: 1038-8982

Subject References:
capital gains
capital improvement
improvement threshold
separate CGT asset

Legislative References:
TAA 1953
ITAA 1997 108-70
ITAA 1997 108-75
ITAA 1997 108-85
ITAA 1997 108-85(2)
ITAA 1997 108-85(3)
ITAA 1997 960-M

TD 2006/41 history
  Date: Version: Change:
You are here 31 May 2006 Original ruling  
  18 May 2016 Withdrawn