INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3 - Determination of capital gains and capital losses  

SECTION 160ZJ   INDEXATION OF AMOUNTS FOR PURPOSES OF INDEXED COST BASE  

160ZJ(1)   [Index number]  

In this section, ``index number'' , in relation to a quarter, means 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.

160ZJ(2)   [Substituted index numbers]  

Subject to subsection (3), 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.

160ZJ(3)   [Change by Statistician of reference base]  

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.

160ZJ(3A)   [Indexed amount of consideration]  

Where, in respect of an asset, a taxpayer has paid or given or is required to pay or give any consideration referred to in paragraph 160ZH(2)(a), the indexed amount of the consideration in respect of the acquisition of the asset is the amount or the total of the amounts calculated as follows:

(a) if the taxpayer acquired the asset:

(i) as a result of the doing by a person of an act that did not constitute a disposal of the asset for the purposes of this Part; or

(ii) from a person to whose acquisition of the asset subparagraph (i) or this subparagraph applied;

the indexed amount of so much of the consideration as was required to be paid to the person referred to in subparagraph (i) (in this paragraph called the ``relevant consideration'' ) is the sum of the amounts ascertained under whichever of the following subparagraphs is or are applicable:

(iii) where the whole or a part of the amount of the relevant consideration was paid or given at or before the time of the acquisition - that amount, or that part of that amount, as the case may be, multiplied by the factor ascertained in accordance with subsections (5) and (6) in relation to that amount or that part of that amount;

(iv) where the whole or a part of the amount of the relevant consideration was paid or given at a later time - that amount or that part of that amount, as the case may be, multiplied by the factor ascertained in accordance with subsections (5A) and (6) in relation to that amount or that part of that amount;

(v) where the whole or a part of the amount of the relevant consideration has not been paid or given - that amount or that part of that amount;

and the indexed amount of the remainder of the consideration is the amount of that remainder multiplied by the factor ascertained in accordance with subsections (5) and (6) in relation to that amount; and

(b) if the taxpayer did not acquire the asset as mentioned in paragraph (a), the indexed amount of the consideration is the amount of the consideration multiplied by the factor ascertained in accordance with subsections (5) and (6) in relation to that amount.

160ZJ(4)   [Indexed amount of costs or expenditure]  

Where, in respect of an asset, a taxpayer has incurred any costs referred to in paragraph 160ZH(2)(b) or (e) or any expenditure referred to in paragraph 160ZH(2)(c) or (d), the reference in paragraph 160ZH(2)(b) or (e) to the indexed amount of the costs, or the reference in paragraph 160ZH(2)(c) or (d) to the indexed amount of the expenditure, in relation to the asset is a reference to the amount of the costs or the amount of the expenditure, as the case may be, multiplied by the factor ascertained in accordance with subsections (5) and (6) in relation to that amount.

160ZJ(5)   [Calculation of factor]  

The factor to be ascertained for the purposes of subparagraph (3A)(a)(iii), paragraph (3A)(b) or subsection (4) in relation to an amount of consideration, an amount of costs or an amount of expenditure is:

(a) the number (calculated to 3 decimal places) ascertained by dividing the index number in respect of the quarter of the year in which the asset was disposed of by the taxpayer by the index number in respect of the quarter of the year in which the liability to pay or give the consideration arose, the costs were incurred or the expenditure was incurred, as the case may be; or

(b) the number 1;

whichever is the higher number.

160ZJ(5A)   [Factor for purposes of subsec (3A)(a)(iv)]  

The factor to be ascertained for the purposes of subparagraph (3A)(a)(iv) in relation to an amount of consideration is:

(a) the number (calculated to 3 decimal places) ascertained by dividing the index number in respect of the quarter of the year in which the asset was disposed of by the taxpayer by the index number in respect of the quarter of the year in which that amount of consideration was paid or given; or

(b) the number 1;

whichever is the higher number.

160ZJ(6)   [Factor calculated to 3 decimal places]  

Where the factor ascertained in accordance with subsection (5) or (5A) in relation to any amount would, if it were calculated to 4 decimal places, end with a number greater than 4, that factor is to be taken to be the factor calculated to 3 decimal places in accordance with that subsection and increased by 0.001.