Document ID: chunk:federal_register_of_legislation:C2025C00029:section:18:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 18 (pt 4/5)
Character Range: 2001594–2004173

afterwards to be treated as having been acquired at the particular time with a first element of cost base equal to all of its former cost base elements.

110‑35  Incidental costs
 (1) There are a number of incidental costs you may have incurred. Except for the ninth, they are costs you may have incurred:
 (a) to *acquire a *CGT asset; or
 (b) that relate to a *CGT event.
 (2) The first is remuneration for the services of a surveyor, valuer, auctioneer, accountant, broker, *agent, consultant or legal adviser. However, remuneration for professional advice about the operation of this Act is not included unless it is provided by a *recognised tax adviser.
Note: Expenditure for professional advice about taxation incurred before 1 July 1989 does not form part of the cost base of a CGT asset: see section 110‑35 of the Income Tax (Transitional Provisions) Act 1997.
 (3) The second is costs of transfer.
 (4) The third is stamp duty or other similar duty.
 (5) The fourth is:
 (a) if you *acquired a *CGT asset—costs of advertising or marketing to find a seller; or
 (b) if a *CGT event happened—costs of advertising or marketing to find a buyer.
 (6) The fifth is costs relating to the making of any valuation or apportionment for the purposes of this Part or Part 3‑3.
 (7) The sixth is search fees relating to a *CGT asset.
 (8) The seventh is the cost of a conveyancing kit (or a similar cost).
 (9) The eighth is borrowing expenses (such as loan application fees and mortgage discharge fees).
 (10) The ninth is expenditure that:
 (a) is incurred by the *head company of a *consolidated group or *MEC group to an entity that is not a *member of the group; and
 (b) reasonably relates to a *CGT asset *held by the head company; and
 (c) is incurred because of a transaction that is between members of the group.
Example: Land is transferred by one company to another company. The companies are members of a consolidated group. Stamp duty is payable as a result of the transaction.
 The transaction has no taxation consequences because of its intra‑group nature.
 The stamp duty is included in the cost base and reduced cost base of the land.
Note: Intra‑group assets are not held by the head company because of the operation of subsection 701‑1(1) (the single entity rule). An example of an intra‑group asset is a debt owed by a member of the consolidated group to another member of the group.
 (11) The tenth is termination or other similar fees incurred as a direct result of your ownership of a *CGT asset ending.

110‑36  Indexation
 (1) The cost base of a *CGT asset