INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 19A - Transfers of assets between companies under common ownership  

Subdivision A - Outline and interpretation  

SECTION 160ZZRBB   MEANING OF INDEXED COMMON OWNERSHIP MARKET VALUE  

160ZZRBB(1)   [Indexed common ownership market value]  

The indexed common ownership market value of an asset is worked out by multiplying the market value of the asset at the common ownership time by the following indexation factor:

Index number for the CPI quarter in which the first asset                                                             disposal time occurred                                                             Index number for the CPI quarter in which the common ownership time occurred

160ZZRBB(2)   [Indexation factor]  

The indexation factor is to be worked out to 3 decimal places, but increased by 0.001 if the 4th decimal place is 5 or more.

160ZZRBB(3)   [Index numbers]  

Calculations under subsection (1):

(a) are to be made using only the index numbers published in terms of the most recently published reference base for the Consumer Price Index; and

(b) are to disregard indexation numbers that are published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the reference base).

160ZZRBB(4)   [Definitions]  

In this section:

CPI quarter
means a period of 3 months ending on 31 March, 30 June, 30 September or 31 December.

index number
means the All Groups Consumer Price Index Number (being the weighted average of the 8 capital cities) published by the Australian Statistician.