Taxation Determination

TD 2010/16

Income tax: capital gains: what is the improvement threshold for the 2010-11 income year under section 108-85 of the Income Tax Assessment Act 1997?

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This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953.

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1. For the 2010-11 income year, the improvement threshold is $126,619.

Date of effect

2. This Determination applies for the 2010-11 income year.

Commissioner of Taxation
19 May 2010

Appendix 1 - Explanation

Exclamation 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. For the 2010-11 income year, the improvement threshold is $126,619.

4. The improvement threshold is determined for the purposes of section 108-70 of the Income Tax Assessment Act 1997 (ITAA 1997) (about when a capital improvement to a pre-CGT asset is a separate asset) and section 108-75 of the ITAA 1997 (about capital improvements to CGT assets for which a rollover may be available).

5. The improvement threshold amount must be indexed annually - see subsection 108-85(2) of the ITAA 1997. Subdivision 960-M of the ITAA 1997 (about indexation) provides guidance on how to index the amounts and how to calculate the indexation factor - see sections 960-270 and 960-275 of the ITAA 1997.

6. This Determination must be published before the 2010-11 financial year begins - see subsection 108-85(3) of the ITAA 1997.

Not previously issued as a draft


ATO references:
NO 1-20F8Z48

ISSN: 1038-8982

Related Rulings/Determinations:

TD 94/56
TD 95/23
TD 96/30
TD 97/12
TD 98/13
TD 1999/29
TD 2000/25
TD 2001/12
TD 2002/12
TD 2003/13
TD 2004/15
TD 2005/20
TD 2006/41
TD 2007/19
TD 2008/13
TD 2009/12

Subject References:
capital gains tax
CGT assets
improvement threshold
separate CGT asset

Legislative References:
TAA 1953
ITAA 1997 108-70
ITAA 1997 108-75
ITAA 1997 108-85
ITAA 1997 108-85(2)
ITAA 1997 108-85(3)
ITAA 1997 Subdivision 960-M
ITAA 1997 960-270
ITAA 1997 960-275

TD 2010/16 history
  Date: Version: Change:
You are here 19 May 2010 Original ruling  
  1 June 2016 Withdrawn  

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