Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 110.37

Expenditure forming part of cost base or element

             (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.



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