INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 2 - Application  

SECTION 160Q   INDEXATION OF INDEXED COST BASE LIMIT  

160Q(1)   [Indexation for purposes of sec 160P(6)(c)]  

Subject to subsection (2), subparagraph 160P(6)(c)(ii) has effect in relation to a relevant year of income as if, for the reference in that subparagraph to $50,000, there were substituted a reference to an amount calculated by multiplying -

(a) in a case to which paragraph (b) does not apply - $50,000; or

(b) where subparagraph 160P(6)(c)(ii) has had effect in relation to a year of income or years of income preceding the relevant year of income as if a reference to another amount were substituted for the reference in that subsection to $50,000 or would have so had effect but for the operation of subsection (2) of this section - the substituted amount or the last substituted amount, or the amount or the last amount that would, but for the operation of subsection (2), have been so substituted, as the case may be,

by the factor ascertained in accordance with subsection (3).

160Q(2)   [Substituted amount not more than $50,000]  

Subsection (1) does not have effect in relation to a relevant year of income where, if it did so have effect, the amount that would be substituted in subparagraph 160P(6)(c)(ii) would not exceed $50,000.

160Q(3)   [Factor]  

The factor to be ascertained for the purposes of subsection (1) in relation to a relevant year of income is the number (calculated to 3 decimal places) ascertained by dividing the sum of -

(a) the index number in respect of the March quarter immediately preceding that relevant year of income; and

(b) the index numbers in respect of the 3 quarters that immediately preceded that quarter,

by the sum of -

(c) the index number in respect of the March quarter immediately preceding the year of income that next preceded that relevant year of income; and

(d) the index numbers in respect of the 3 quarters that immediately preceded that last-mentioned quarter.

160Q(4)   [Substitution index number]  

Subject to subsection (5), if at any time, whether before or after the commencement of this Part, the Australian Statistician has published or publishes an index number in respect of a quarter in substitution for an index number previously published by the Australian Statistician in respect of that quarter, the publication of the later index number shall be disregarded for the purposes of this section.

160Q(5)   [Change of reference base by Statistician]  

If, at any time, whether before or after the commencement of this Part, the Australian Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this section after the change took place or takes place, regard shall be had only to index numbers published in terms of the new reference base.

160Q(6)   [Rounding of decimal places]  

Where the factor ascertained in accordance with subsection (3) in relation to a relevant year of income would, if it were calculated to 4 decimal places, end with a number greater than 4, the factor ascertained in accordance with that subsection in relation to that relevant year of income shall be taken to be the factor calculated to 3 decimal places in accordance with that subsection and increased by 0.001.

160Q(7)   [Notification]  

The Commissioner must publish by written notice before the commencement of each relevant year of income:

(a) the factor ascertained in accordance with subsection (3) (as affected by subsection (6)) in relation to that year of income; and

(b) the amount that is to be substituted in subparagraph 160P(6)(c)(ii) in relation to that year of income for improvements to which subsection 160P(6) applies.

160Q(8)   [Rounding to whole dollars]  

Where, but for this subsection, this section would, by virtue of the preceding provisions of this section, have effect in relation to a relevant year of income as if, for the reference in subsection 160P(6) to $50,000, there were substituted a reference to another amount, being an amount that consists of a number of whole dollars and a number of cents (in this subsection referred to as the ``relevant number of cents'' ):

(a) in the case where the relevant number of cents is less than 50 - the other amount shall be reduced by the relevant number of cents; or

(b) in any other case - the other amount shall be increased by the amount by which the relevant number of cents is less than $1.

160Q(9)   [Rounding to whole dollars]  

Where, but for subsection (2), this section would, by virtue of the preceding provisions of this section, have effect in relation to a relevant year of income as if, for the reference in subsection 160P(6) to $50,000, there were substituted a reference to another amount, being an amount that consists of a number of whole dollars and a number of cents (in this subsection referred to as the ``relevant number of cents'' ), then, for the purposes of the application of paragraph (1)(b):

(a) in a case where the relevant number of cents is less than 50 - the other amount shall be reduced by the relevant number of cents; or

(b) in any other case - the other amount shall be increased by the amount by which the relevant number of cents is less than $1.

160Q(10)   [``Relevant year of income''; ``index number'']  

In this section:

(a) a reference to a relevant year of income is a reference to the year of income in which the asset to which the improvement referred to in paragraph 160P(6)(b) relates was disposed of, being the year of income commencing on 1 July 1986 or a subsequent year of income; and

(b) a reference to an index number, in relation to a quarter, is a reference to the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter.