Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_6:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 1/10)
Character Range: 209585–212270

6                      CGT event happens because a trust deed of a complying approved deposit fund or complying superannuation fund is changed  Subdivision 126‑C

Division 114—Indexation of cost base

Table of sections

114‑1 Indexing elements of cost base
114‑5 When indexation relevant
114‑10 Requirement for 12 months ownership
114‑15 Cost base modifications
114‑20 When expenditure is incurred for roll‑overs

114‑1  Indexing elements of cost base

  In working out the *cost base of a *CGT asset, index expenditure in each element. (The expenditure can include giving property: see section 103‑5).

Note 1: Subdivision 960‑M shows you how to index amounts.

Note 2: You have to work out the cost base of a CGT asset if a CGT event happens in relation to it or if there is a cost base modification.

Note 3: You cannot index expenditure in the third element (non‑capital costs of ownership): see subsection 960‑275(4).

Example: Peter purchases a building as an investment on 1 January 1994 for $250,000. This amount forms the first element of his cost base.

 He sold the building on 1 February 1996.

 The index number for the quarter in which he sold the building (the March quarter 1996) is 119.0. The index number for the quarter in which he purchased the building (the March quarter 1994) is 110.4.

 Applying section 960‑275, work out the indexation factor as follows:

 The indexed first element of Peter's cost base is:

114‑5  When indexation relevant

  Indexation is only relevant if the *cost base of a *CGT asset is relevant to a *CGT event.

Note 1: The table in section 110‑10 sets out the CGT events for which cost base is not relevant.

Note 2: Indexation is not relevant to the reduced cost base of a CGT asset.

114‑10  Requirement for 12 months ownership

 (1) You only index expenditure in the *cost base of a *CGT asset for a *CGT event happening in relation to the asset if you, or the entity whose cost base is being worked out, had *acquired the asset at least 12 months before the time of that *CGT event.

Note: Generally, expenditure is indexed from when it is incurred: see subsection 960‑275(2). The exception is when there is an acquisition that did not result from a CGT event. The first element in this case is indexed from when the expenditure was paid: see subsection 960‑275(3).

 (2) There are 5 exceptions:

 • one for *CGT event E8: see subsection (3); and

 • one for roll‑overs: see subsections (4) and (5); and

 • one for deceased estates: see subsection (6); and

 • one for a surviving joint tenant: see subsection (7); and

 • one for *CGT event J1: see subsection (8).

CGT event E8

 (3) For *CGT