Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 110.37

  (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.