Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 114 - Indexation of cost base  

SECTION 114-25   Residency requirements for individuals for indexation to be included in a cost base under subsection 110-36(1A)  

114-25(1)    
This section sets out requirements for indexation to be included under subsection 110-36(1A) in the * cost base of a * CGT asset for the purposes of working out your * capital gain from a * CGT event happening in relation to the * CGT asset if:

(a)    you are an individual; and

(b)    the CGT event happened while you were holding the CGT asset (as a result of earlier * acquiring it).

Note:

This section applies for working out a capital gain you make from directly holding the asset. A similar result arises for any capital gain you make indirectly as a beneficiary of a trust (see Subdivision 115-C , in particular subsections 115-225(4) and (5) ).

114-25(2)    
You must be neither a foreign resident nor a * temporary resident at any time during the period (the testing period ):

(a)    starting on the later of 1 July 2027 and the day of * acquiring the * CGT asset; and

(b)    ending on the day the * CGT event happens.

114-25(3)    
For the purposes of subsection (2) , if:

(a)    another individual owned the * CGT asset on a particular day before the testing period ends; and

(b)    on that day, that individual was one of the following (that individual ' s residency status ):

(i) an Australian resident (but not a * temporary resident);

(ii) a temporary resident;

(iii) a foreign resident; and

(c)    section 115-30 treats you as having * acquired the CGT asset when that individual, or an earlier owner of the CGT asset, acquired it;

you are treated as having the same residency status on that day as that individual had on that day.

114-25(4)    
Section 115-30 applies to subsections (2) and (3) of this section in a corresponding way to the way that section applies in relation to section 115-105 .

Note:

Section 115-30 has special rules about when assets are acquired.