Document ID: chunk:federal_register_of_legislation:C2010C00637:clause:4_31
Version: federal_register_of_legislation:C2010C00637
Segment Type: clause
Provision Reference: sch 4 cl 31
Character Range: 23750–24755

31  After the group heading before section 110‑40
Insert:

110‑37  Expenditure forming part of cost base or element

 (1) If a later provision of this Subdivision says that:
 (a) certain expenditure does not form part of the *cost base of a *CGT asset; or
 (b) the cost base is reduced by certain expenditure;
the expenditure is initially included in the cost base, which is then reduced by the amount of the expenditure just before a *CGT event happens in relation to the asset.

Note: This has the effect of recognising in the cost base any indexed component relating to the expenditure.

 (2) On the other hand, if such a provision says that:
 (a) certain expenditure does not form part of one or more elements of the *cost base of a *CGT asset; or
 (b) one or more elements of the cost base are reduced by certain expenditure;
the expenditure is never included in the relevant elements of the cost base.

Note: This has the effect of not recognising to any extent this expenditure in the cost base.