Income Tax Assessment Act 1997



Division 110 - Cost base and reduced cost base  

Subdivision 110-A - Cost base  

SECTION 110-35   Incidental costs  


There are a number of incidental costs you may have incurred. Except for the ninth , they are costs you may have incurred:

(a) to *acquire a *CGT asset; or

(b) that relate to a *CGT event.


The first is remuneration for the services of a surveyor, valuer, auctioneer, accountant, broker, *agent, consultant or legal adviser. However, remuneration for professional advice about the operation of this Act is not included unless it is provided by a *recognised tax adviser.

Expenditure for professional advice about taxation incurred before 1 July 1989 does not form part of the cost base of a CGT asset: see section 110-35 of the Income Tax (Transitional Provisions) Act 1997 .

The second is costs of transfer.

The third is stamp duty or other similar duty.

The fourth is:

(a) if you *acquired a *CGT asset - costs of advertising or marketing to find a seller; or

(b) if a *CGT event happened - costs of advertising or marketing to find a buyer.

The fifth is costs relating to the making of any valuation or apportionment for the purposes of this Part or Part 3-3.


The sixth is search fees relating to a *CGT asset.


The seventh is the cost of a conveyancing kit (or a similar cost).


The eighth is borrowing expenses (such as loan application fees and mortgage discharge fees).


The ninth is expenditure that:

(a) is incurred by the *head company of a *consolidated group or *MEC group to an entity that is not a *member of the group; and

(b) reasonably relates to a *CGT asset *held by the head company; and

(c) is incurred because of a transaction that is between members of the group.


Land is transferred by one company to another company. The companies are members of a consolidated group. Stamp duty is payable as a result of the transaction.

The transaction has no taxation consequences because of its intra-group nature.

The stamp duty is included in the cost base and reduced cost base of the land.


Intra-group assets are not held by the head company because of the operation of subsection 701-1(1) (the single entity rule). An example of an intra-group asset is a debt owed by a member of the consolidated group to another member of the group.


The tenth is termination or other similar fees incurred as a direct result of your ownership of a *CGT asset ending.


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