INCOME TAX ASSESSMENT ACT 1997 - SECT 114.5 When indexation relevant
INCOME TAX ASSESSMENT ACT 1997 - SECT 114.5
When indexation relevant(1) 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.
Indexation for some entities only if indexation chosen
(2) Indexation is not relevant to the * capital gain of an entity mentioned in an item of the table from a * CGT event happening after 11.45 am (by legal time in the Australian Capital Territory) on 21 September 1999, unless the relevant entity mentioned in that item has chosen that the * cost base include indexation:
Entities for which indexation is not relevant unless chosen | ||
Item | Indexation is not relevant to the capital gain of this entity: | Unless this entity has chosen that the cost base include indexation: |
1 | An individual | The individual |
2 | A * complying superannuation entity | The trustee of the complying superannuation entity |
3 | A trust | The trustee of the trust |
4 | The company | |
(3) Indexation is not relevant to the * capital gain of a * life insurance company from a * CGT event happening after 30 June 2000 in respect of a * CGT asset that is a * complying superannuation asset unless the company has chosen that the * cost base include indexation.
Note: Section 114 - 5 of the
Income Tax (Transitional Provisions) Act 1997 provides that indexation is not
relevant to the capital gain of a life insurance company or registered
organisation from a CGT event after 11.45 am on 21 September 1999 and
before 1 July 2000 unless the company or organisation chooses it.