Income tax: capital gains: what is the improvement threshold for the 2018-19 income year under section 108-85 of the Income Tax Assessment Act 1997?
Please note that the PDF version is the authorised version of this ruling.For information on CGT improvement thresholds for future financial years, refer to Capital improvements and separate assets.
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Date of effect
Commissioner of Taxation
20 June 2018
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.|
3. The improvement threshold is determined for the purposes of section 108-70 of the ITAA 1997 (about when a capital improvement to a pre-CGT asset is a separate asset). It is also determined for the purposes of section 108-75 of the ITAA 1997 (about capital improvements to CGT assets for which a rollover may be available).
5. Subdivision 960-M of the ITAA 1997 (about indexation) provides guidance on how to index the improvement threshold amount and how to calculate the indexation factor - see sections 960-270 and 960-275 of the ITAA 1997.
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Not previously issued as a draft