Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 2/4)
Character Range: 1959879–1963715

the factors to be considered include:
 (a) the nature of the *CGT asset to which the improvements are made; and
 (b) the nature, location, size, value, quality, composition and utility of each improvement; and
 (c) whether an improvement depends in a physical, economic, commercial or practical sense on another improvement; and
 (d) whether the improvements are part of an overall project; and
 (e) whether the improvements are of the same kind; and
 (f) whether the improvements are made within a reasonable period of time of each other.

108‑85  Meaning of improvement threshold
 (1) The improvement threshold for the 1997‑98 income year is $89,992.
 (2) The *improvement threshold is indexed annually.
Note: Subdivision 960‑M shows you how to index amounts.
 (3) The Commissioner must publish before the beginning of each *financial year the *improvement threshold for that year.

Division 109—Acquisition of CGT assets

Table of Subdivisions
 Guide to Division 109
109‑A Operative rules
109‑B Signposts to other acquisition rules

Guide to Division 109

109‑1  What this Division is about

      This Division sets out the ways in which you can acquire a CGT asset and the time of acquisition.
      The time of acquisition is important for indexation, and for the exemption of assets acquired before 20 September 1985.
      Generally, you acquire a CGT asset when you become its owner. You can also acquire a CGT asset:
           • as a result of a CGT event happening: see section 109‑5; or
           • in other circumstances: see section 109‑10.
      This Division also directs you to special acquisition rules in other Divisions.

Subdivision 109‑A—Operative rules

Table of sections
109‑5 General acquisition rules
109‑10 When you acquire a CGT asset without a CGT event

109‑5  General acquisition rules
 (1) In general, you acquire a *CGT asset when you become its owner. In this case, the time when you *acquire the asset is when you become its owner.
 (2) This table sets out specific rules for the circumstances in which, and the time at which, you acquire a *CGT asset as a result of a *CGT event happening.
Note: The full list of CGT events is in section 104‑5.

Acquisition rules (CGT events)
Event Number
                                In these circumstances:                                                                                                                              You acquire the asset at this time:
A1                              An entity *disposes of a CGT asset to you (except where you compulsorily acquire it)                                                                 when the disposal contract is entered into or, if none, when the entity stops being the asset's owner
(case 1)
A1                              You compulsorily acquire a *CGT asset from another entity                                                                                            the earliest of:
(case 2)                                                                                                                                                                             (a) when you paid compensation to the entity; or
                                                                                                                                                                                     (b) when you became the asset's owner; or
                                                                                                                                                                                     (c) when you entered the asset under the power of compulsory acquisition; or
                                                                                                                                                                                     (d) when