Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 1/3)
Character Range: 7721497–7724174

14                                           Levy threshold for the major bank levy                                                                                  subsection 4(3) of the Major Bank Levy Act 2017

Note: There are provisions of the Income Tax Assessment Act 1936 dealing with indexation that have not yet been rewritten.

Operative provisions

960‑270  Indexing amounts
 (1) Some provisions of this Act require amounts to be indexed. You index an amount by multiplying it by its *indexation factor.
 (2) You do not index the amount if its *indexation factor is 1 or less.
 (3) This section does not apply in relation to amounts mentioned in the provisions listed at items 8 to 12, or at item 14, in section 960‑265.
Note: For the indexation of those amounts, see sections 960‑285 and 960‑290.

960‑275  Indexation factor
 (1) For indexation of amounts on an annual basis, the indexation factor is:
 (1A) However, for indexation of the amounts mentioned in the provisions listed at items 5, 6 and 7 in section 960‑265, the indexation factor is:

 (2) For indexation of the *cost base of a *CGT asset (except the first element of the cost base of an asset covered by subsection (3)), the indexation factor for expenditure in an element of the cost base is:
The expenditure can include giving property: see section 103‑5.
Note 1: This rule does not apply to expenditure incurred after 11.45 am on 21 September 1999 or any expenditure relating to a CGT asset acquired after that time: see section 114‑1.
Note 2: This rule applies even if you do not actually pay some of the expenditure until a later time (for example, under a contract to purchase an asset by instalments).
Note 3: There are rules affecting when the expenditure was incurred: see sections 114‑15 and 114‑20.
 (3) For indexation of the first element of the *cost base of a *CGT asset that is:
 (a) a *share in a company; or
 (b) a unit in a unit trust;
the indexation factor for an amount in the first element of the *cost base of the asset that was paid to the company or trust at a time after it was *acquired is:
The payment can include giving property: see section 103‑5.
Example: Peter acquires shares in a company. The shares are partly‑paid, and the company makes a call on the shares. Peter sells the shares to Narina before he is liable to pay the call.
 The amount Narina paid to Peter for the shares is indexed under subsection 960‑275(2) from the quarter in which she incurred the expenditure to acquire the shares.
 The amount Narina later pays for the call on the shares is indexed in accordance with subsection 960‑275(3) from the quarter in which she made that later payment.
Note 1: