Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 110.35

  (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.