Income Tax Assessment Act 1997
If a later provision of this Subdivision says that:
(a) certain expenditure does not form part of the *cost base of a *CGT asset; or
(b) the cost base is reduced by certain expenditure;
the expenditure is initially included in the cost base, which is then reduced by the amount of the expenditure just before a *CGT event happens in relation to the asset.
This has the effect of recognising in the cost base any indexed component relating to the expenditure.110-37(2)
On the other hand, if such a provision says that:
(a) certain expenditure does not form part of one or more elements of the *cost base of a *CGT asset; or
(b) one or more elements of the cost base are reduced by certain expenditure;
the expenditure is never included in the relevant elements of the cost base.
This has the effect of not recognising to any extent this expenditure in the cost base.
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