Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-1
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CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Division 112
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Modifications to cost base and reduced cost base
Subdivision 112-A
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General modifications
SECTION 112-30
Apportionment rules
Apportionment on acquisition of an asset
112-30(1)
If you *acquire a *CGT asset because of a transaction and only part of the expenditure you incurred under the transaction relates to the acquisition of the asset, the first element of your *cost base and *reduced cost base of the asset is that part of the expenditure that is reasonably attributable to the acquisition of the asset.
Apportionment of expenditure in other elements
112-30(1A)
If you incur expenditure and only part of it relates to another element of the *cost base or *reduced cost base of a *CGT asset, that element includes that part of the expenditure that is reasonably attributable to that element.
Apportionment for CGT asset that was part of another asset
112-30(2)
The *cost base and *reduced cost base of a *CGT asset is apportioned if a *CGT event happens to some part of the asset, but not to the remainder of it.
112-30(3)
The *cost base for the *CGT asset representing the part to which the *CGT event happened is worked out using the formula:
112-30(4)
The remainder of the *cost base and *reduced cost base of the asset is attributed to the part that remains.
112-30(5)
However, an amount forming part of the *cost base or *reduced cost base of the asset is not apportioned if, on the facts, that amount is wholly attributable to the part to which the *CGT event happened or to the remaining part.
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Hide history noteApportionment on acquisition of an asset
112-30(1)
If you *acquire a *CGT asset because of a transaction and only part of the expenditure you incurred under the transaction relates to the acquisition of the asset, the first element of your *cost base and *reduced cost base of the asset is that part of the expenditure that is reasonably attributable to the acquisition of the asset.
The expenditure can include giving property: see section 103-5 .
Apportionment of expenditure in other elements
112-30(1A)
If you incur expenditure and only part of it relates to another element of the *cost base or *reduced cost base of a *CGT asset, that element includes that part of the expenditure that is reasonably attributable to that element.
Apportionment for CGT asset that was part of another asset
112-30(2)
The *cost base and *reduced cost base of a *CGT asset is apportioned if a *CGT event happens to some part of the asset, but not to the remainder of it.
Note:
The full list of CGT events is in section 104-5 .
112-30(3)
The *cost base for the *CGT asset representing the part to which the *CGT event happened is worked out using the formula:
| Cost base of the asset | × |
Capital proceeds for the CGT event
happening to the part Those capital proceeds plus the market value of the remainder of the asset |
The *reduced cost base is worked out similarly.
112-30(4)
The remainder of the *cost base and *reduced cost base of the asset is attributed to the part that remains.
Example:
You acquire a truck for $24,000 and sell its motor for $9,000. Suppose the market value of the remainder of the truck is $16,000.
Under subsection (3), the cost base of the motor is:
$24,000 × $9,000
$9,000 + $16,000= $8,640 Under subsection (4), the cost base of the remainder of the truck is:
$24,000 − $8,640 = $15,360
112-30(5)
However, an amount forming part of the *cost base or *reduced cost base of the asset is not apportioned if, on the facts, that amount is wholly attributable to the part to which the *CGT event happened or to the remaining part.
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