Income Tax Assessment Act 1997



Division 132 - Leases  

SECTION 132-10   Grant of a long-term lease  

These rules apply if *CGT event F2 happens for a lessor of property.

For any later *CGT event that happens to the land or the lessor ' s lease of it, its *cost base and *reduced cost base (including the cost base and reduced cost base of any building, part of a building, structure or improvement that is treated as a separate *CGT asset) excludes:

(a) any expenditure incurred before *CGT event F2 happens; and

(b) the *cost of any *depreciating asset for which the lessor has deducted or can deduct an amount for the asset ' s decline in value under this Act.


Subdivision 108-D sets out when a building, structure or improvement is treated as a separate CGT asset.


The fourth element of the property ' s *cost base and *reduced cost base includes any payment by the lessor to the lessee to vary or waive a term of the lease or for the forfeiture or surrender of the lease, reduced by the amount of any *input tax credit to which the lessor is entitled for the variation or waiver.

The expenditure or payment can include giving property: see section 103-5 .


Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.