Taxation Determination

TD 2017/16

Income tax: capital gains: what is the improvement threshold for the 2017-18 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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If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.


1. For the 2017-18 income year, the improvement threshold is $147,582.

Date of effect

2. This Taxation Determination applies for the 2017-18 income year.

Commissioner of Taxation
14 June 2017

Appendix 1 - Explanation

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. 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). It is also determined for the purposes of section 108-75 of the ITAA 1997 (about capital improvements to CGT assets for which a rollover may be available).

4. The improvement threshold is indexed annually - see subsection 108-85(2) of the ITAA 1997.

5. Subdivision 960-M of the ITAA 1997 (about indexation) provides guidance on how to index the improvement threshold amount and how to calculate the indexation factor - see sections 960-270 and 960-275 of the ITAA 1997.

6. This Taxation Determination is published in accordance with subsection 108-85(3) of the ITAA 1997 before the start of the 2017-18 financial year.


You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Not previously issued as a draft


ATO references:
NO 1-9M51TVC

Previous Rulings/Determinations:
TD 2012/14
TD 2013/19
TD 2014/16
TD 2015/13
TD 2016/12

ISSN: 2205-6211

Business Line:  IND

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