Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS

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Division 112 - Modifications to cost base and reduced cost base

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Subdivision 112-B - Finding tables for special rules

SECTION 112-97

112-97 Modifications outside this Part and Part 3-3

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This table sets out other cost base modifications outside this Part and Part 3-3.

Provisions of the Income Tax Assessment Act 1936 are in bold .

Modifications outside this Part and Part 3-3
Item	In this situation:	Element affected:	See:
1A	You receive, under a farm-in farm-out arrangement, an exploration benefit or an entitlement to an exploration benefit	First element of cost base and reduced cost base	Section 40-1120

1	You stop holding an item as trading stock	First element of cost base and reduced cost base	Paragraph 70-110(1)(b)
.
2	CGT event happens to Cocos (Keeling) Islands asset	First element of cost base and reduced cost base	subsection 102-25(1) of the Income Tax (Transitional Provisions) Act 1997
.
2AA	(Repealed by No 20 of 2016)
.
2A	Lender acquires a replacement security	First element of cost base and reduced cost base	subsection 26BC(6B)
.
3	CGT event happens by the borrower disposing of the borrowed security to a third party	First element of cost base and reduced cost base	paragraph 26BC(9)(a)
.
4	CGT event happens to replacement security and compensatory payment was incurred by the borrower	Second element of cost base and reduced cost base	subsection 26BC(9A)
.
5	CGT event happens to CGT asset in connection with the demutualisation of an insurance company except a friendly society health or life insurer	First element of cost base and reduced cost base	section 121AS
.
5A	CGT event happens to CGT asset in connection with the demutualisation of a mutual entity other than an insurance company, health insurer and friendly society health or life insurer	First element of cost base and reduced cost base	Division 326 in Schedule 2H
.
6	CGT event happens to assets of NSW State Bank	First element of cost base and reduced cost base	section 121EN
.
7	Trust ceases to be a resident trust for CGT purposes and there is an attributable taxpayer	The total cost base and reduced cost base	section 102AAZBA
.
8	You own shares in a company that stops being a PDF	First element of cost base and reduced cost base	section 124ZR
.
9	(Repealed by No 23 of 2018)
.
10	CGT event happens to CGT asset used in gold mining	First element of cost base and reduced cost base	section 112-100 of the Income Tax (Transitional Provisions) Act 1997
.
11	(Repealed by No 101 of 2006 )
.
12	Shares in a holding company are cancelled	The total cost base and reduced cost base	section 159GZZZH
.
12A	(Repealed by No 4 of 2018)
.
12B	Entity has interest in loss company immediately before alteration time	The total reduced cost base	sections 165-115ZA and 165-115ZB
.
13	CGT event happens to 30 June 1988 asset of a complying superannuation entity	First element of cost base and reduced cost base	section 295-85 of the Income Tax (Transitional Provisions) Act 1997
.
14	CGT event happens to CGT asset of a complying superannuation entity	First element of cost base and reduced cost base	section 295-100 of the Income Tax (Transitional Provisions) Act 1997
.
15	A CGT asset of a CFC is taken into account in calculating its attributable income	First element of cost base and reduced cost base	section 412
.
16	A CGT asset of a CFC is taken into account in calculating its attributable income	First element of cost base and reduced cost base	subsection 413(2)
.
17	A CGT asset of a CFC is taken into account in calculating its attributable income	First element of cost base and reduced cost base	subsection 413(3)
.
18	A CGT asset of a CFC is taken into account in calculating its attributable income	First element of cost base and reduced cost base	section 414
.
18A	You cease to hold a registered emissions unit as the result of an outgoing international transfer of a Kyoto unit	First element of cost base and reduced cost base	Section 420-35
.
19	A commercial debt is forgiven	The total cost base and reduced cost base of certain CGT assets of the debtor	sections 245-175 to 245-190
.
20	A tax exempt entity becomes taxable	First element of cost base and reduced cost base	section 57-25 in Schedule 2D
.
20A	An entity becomes or ceases to be a foreign hybrid	The total cost base and reduced cost base	Sections 830-80 and 830-85
.
21	A CGT asset is transferred to or from a life insurance company ' s complying superannuation asset pool	First element of cost base and reduced cost base	subsection 320-200(2)
.
22	A CGT asset is transferred to or from the segregated exempt assets of a life insurance company	First element of cost base and reduced cost base	subsection 320-255(2)
.
22A	A CGT event happens in relation to forestry interest in a forestry managed investment scheme for a subsequent participant	The total cost base and reduced cost base	Subsection 394-30(9)
.
22B	You start or cease to have a *Division 230 financial arrangement as consideration for the acquisition of a thing	All elements of cost base and reduced cost base	section 230-505
.
23	The arrangement period for the tax preferred use of an asset ends	The total cost base and reduced cost base	subsection 250-285(3)

24	An entity becomes a subsidiary member of a consolidated group	The total cost base and reduced cost base for the head company of the subsidiary ' s assets	Section 701-10

24A	An entity ceases to be a subsidiary member of a consolidated group	The total cost base and reduced cost base for the head company of membership interests in the subsidiary	Section 701-15

24B	An entity ceases to be a subsidiary member of a consolidated group	The total cost base and reduced cost base for the head company of liabilities owed by the subsidiary	Section 701-20

24C	An entity ceases to be a subsidiary member of a consolidated group and an asset becomes an asset of the entity because the single entity rule ceases to apply	The total cost base and reduced cost base for the entity of a liability owed to the entity	Section 701-45

24D	2 or more entities cease to be subsidiary members of a consolidated group	The total cost base and reduced cost base of the membership interests that one subsidiary member holds in another	Section 701-50

24E	Determining an asset ' s tax cost setting amount	The total cost base and reduced cost base of the asset	Section 701-55

24F	Eligible tier-1 company ceases to be a subsidiary member of a MEC group or a CGT event happens to a pooled interest in the company	The total cost base and reduced cost base	Section 719-565
.
24	(Repealed by No 41 of 2005)
.
25	You make a forex realisation gain as a result of forex realisation event 4, and:	total cost base and reduced cost base	section 775-70
	(a)	you incurred the obligation to pay foreign currency:
		(i)	in return for the acquisition of a CGT asset; or
		(ii)	as the second, third, fourth or fifth element of the cost base of a CGT asset; and
	(b)	the foreign currency became due for payment within 12 months after the time when:
		(i)	in the case of the acquisition of a CGT asset - you acquired the CGT asset; or
		(ii)	in the case of the second, third, fourth or fifth element of the cost base of a CGT asset - you incurred the relevant expenditure
.
26	You make a forex realisation loss as a result of forex realisation event 4, and:	total cost base and reduced cost base	section 775-75
	(a)	you incurred the obligation to pay foreign currency:
		(i)	in return for the acquisition of a CGT asset; or
		(ii)	as the second, third, fourth or fifth element of the cost base of a CGT asset; and
	(b)	the foreign currency became due for payment within 12 months after the time when:
		(i)	in the case of the acquisition of a CGT asset - you acquired the CGT asset; or
		(ii)	in the case of the second, third, fourth or fifth element of the cost base of a CGT asset - you incurred the relevant expenditure
.
27	You acquire foreign currency as a result of forex realisation event 2	first element of cost base and reduced cost base	section 775-125

28	On 10 May 2005, a foreign resident holds certain membership interests	first element of cost base and reduced cost base	subsection 855-25(3)

29	You are issued with an asset under a demutualisation of a health insurer except a friendly society health or life insurer	First element of cost base and reduced cost base	sections 315-80, 315-210 and 315-260

30	You are transferred an asset by a lost policy holders trust under a demutualisation of a health insurer except a friendly society health or life insurer	First element of cost base and reduced cost base	sections 315-145, 315-210 and 315-260

30A	A CGT event occurs under a demutualisation of a friendly society health or life insurer and the capital proceeds from the event include money	All elements of cost base	section 316-60

30B	You are issued with an asset under a demutualisation of a friendly society health or life insurer	First element of cost base and reduced cost base	section 316-105

30C	A CGT event happens to an interest in a lost policy holders trust and the capital proceeds from the event include money	All elements of cost base	section 316-165

30D	You are transferred a share, or right to acquire shares, by a lost policy holders trust under a demutualisation of a friendly society health or life insurer	The total cost base and reduced cost base	section 316-170

31	An entitlement arises under Division 2AA of Part II of the Banking Act 1959 in connection with an account holder ' s account with an ADI	The total cost base, and reduced cost base, of the entitlement and of the remainder (if any) of the right to be paid by the ADI in connection with the account	Section 253-15

32	You acquire an *ESS interest and Subdivision 83A-B or 83A-C (about employee share schemes) applies to the interest	First element of cost base and reduced cost base	sections 83A-30 and 83A-125

33	An entity chooses a roll-over under Subdivision 310-D and the entity chooses section 310-55 to apply to assets	First element of cost base and reduced cost base	section 310-55

34	An entity chooses a roll-over under Subdivision 310-D, but the entity does not choose section 310-55 to apply to assets	First element of cost base and reduced cost base	section 310-60

35	A CGT asset is held by a company that has ownership not significantly different from that of a former body that held the asset and was incorporated under another law	First element of cost base and reduced cost base	Section 620-25

36	(Repealed by No 89 of 2013)

37	The issuing of a share gives rise to an entitlement to a tax offset under Subdivision 360-A	First element of cost base and reduced cost base	Sections 360-50, 360-55, 360-60 and 360-65

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History

S 112-97 amended by No 64 of 2020, s 3 and Sch 3 item 79, by substituting " a complying superannuation entity " for " complying superannuation fund, complying approved deposit fund or pooled superannuation trust " in table item 14, effective 1 July 2020.

S 112-97 amended by No 89 of 2013, s 3 and Sch 1 item 15, by repealing table item 36, effective 2 July 2019. Table item 36 formerly read:

36 An entity chooses an asset roll-over, or chooses to transfer a loss and chooses an asset roll-over, under Subdivision 311-B First element of cost base and reduced cost base Section 311-45

S 112-97 amended by No 23 of 2018, s 3 and Sch 1 item 17, by repealing table item 9, effective 1 April 2018. For application provision, see note under s 713-140(5) . For general application and transitional provisions, see note under s 26-65 . Table item 9 formerly read:

9 You acquire a number of shares that results in you obtaining a 10% (threshold) interest in a SME First element of cost base and reduced cost base section 128TI

S 112-97 amended by No 4 of 2018, s 3 and Sch 6 item 17, by repealing table item 12A, effective 21 February 2018. For application provisions, see note under s 230-460(14) . Table item 12A formerly read:

12A You own an interest in infrastructure borrowing just before and just after the end of an exemption period First element of cost base and reduced cost base section 159GZZZZE

S 112-97 amended by No 20 of 2016, s 3 and Sch 1 item 2, by repealing table item 2AA, effective 1 July 2016. Table item 2AA formerly read:

2AA CGT event happens to Norfolk Island asset First element of cost base and reduced cost base subsection 102-25(2) of the Income Tax (Transitional Provisions) Act 1997

S 112-97 amended by No 54 of 2016, s 3 and Sch 1 item 14, by inserting table item 37, applicable in relation to equity interests issued on or after 1 July 2016.

S 112-97 amended by No 53 of 2015, s 3 and Sch 1 items 12 and 13, by substituting " subsection 102-25(1) of the Income Tax (Transitional Provisions) Act 1997 " for " section 24P " in table item 2 and inserting table item 2AA, applicable in relation to the 2016-17 income year and later income years.

S 112-97 amended by No 130 of 2015, s 3 and Sch 1 item 13, by inserting table item 1A, applicable in relation to farm-in farm-out arrangements entered into after 7.30 pm, by legal time in the Australian Capital Territory, on 14 May 2013.

S 112-97 amended by No 70 of 2015, s 3 and Sch 1 item 189, by substituting " superannuation " for " superannuation/FHSA " in table item 21, column headed " In this situation " , effective 1 July 2015.

S 112-97 amended by No 70 of 2015, s 3 and Sch 6 item 30, by substituting " Kyoto unit " for " *Kyoto unit " in table item 18A, column headed " In this situation " , effective 25 June 2015.

S 112-97 amended by No 83 of 2014, s 3 and Sch 1 item 162, by substituting " a *Kyoto unit " for " an *international emissions unit " in table item 18A, column headed " In this situation " , effective 1 July 2014. For application provision see note under s 26-18 .

S 112-97 amended by No 89 of 2013, s 3 and Sch 1 item 4, by inserting table item 36, applicable to income years that include 1 July 2013, and to later income years.

S 112-97 amended by No 132 of 2011, s 3 and Sch 2 items 15B and 16, by substituting " 70-110(1)(b) " for " 70-110(b) " in table item 1 and inserting table item 18A, effective 2 April 2012.

S 112-97 amended by No 12 of 2012, s 3 and Sch 2 item 21, by inserting table item 35, effective 21 March 2012.

S 112-97 amended by No 41 of 2011, s 3 and Sch 5 items 387 and 388, by substituting " in Schedule 2H " for " of Schedule 2H " in table item 5A and " in Schedule 2D " for " of Schedule 2D " in table item 20, column headed " See: " , effective 27 June 2011.

S 112-97 amended by No 79 of 2010 , s 3 and Sch 2 items 28 and 29, by substituting " certain CGT assets of the debtor " for " CGT assets of the debtor (except assets that are excluded assets under Schedule 2C) " and " sections 245-175 to 245-190 " for " sections 245-175 to 245-190 of Schedule 2C " in table item 19, effective 1 July 2010.

S 112-97 amended by No 56 of 2010, s 3 and Sch 6 items 137 and 138, by substituting " subsection 320-200(2) " for " Division 320 " in table item 21 and " subsection 320-255(2) " for " Division 320 " in table item 22, effective 3 June 2010.

S 112-97 amended by No 19 of 2010, s 3 and Sch 2 item 3, by inserting table items 33 and 34 at the end, effective 25 March 2010. For application provisions see note under Div 310 heading.

S 112-97 amended by No 133 of 2009, s 3 and Sch 1 item 34, by inserting table item 32 at the end, applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and (2) of the Income Tax (Transitional Provisions) Act 1997 .

S 112-97 amended by No 88 of 2009, s 3 and Sch 3 items 11 to 14, by inserting " except a friendly society health or life insurer " after " company " in the column headed " In this situation " in table item 5, substituting " , health insurer and friendly society health or life insurer " for " or health insurer " in the column headed " In this situation " in table item 5A, inserting " except a friendly society health or life insurer " after " insurer " in the column headed " In this situation " in table items 29 and 30 and inserting table items 30A, 30B, 30C and 30D, applicable in relation to demutualisations occurring on or after 1 July 2008.

S 112-97 amended by No 42 of 2009 , s 3 and Sch 1 item 19, by inserting table item 31, effective 23 June 2009.

S 112-97 amended by No 15 of 2009 , s 3 and Sch 1 item 73, by inserting table item 22B, effective 26 March 2009. For application and transitional provisions see note under Div 230 heading.

S 112-97 amended by No 97 of 2008 , s 3 and Sch 3 item 93, by inserting table items 24 to 24F after table item 23, effective 3 October 2008.

S 112-97 amended by No 97 of 2008 , s 3 and Sch 1 items 6 and 7, by substituting the column headed " In this situation " in table item 5A and inserting table items 29 and 30, applicable in relation to demutualisations occurring on and after 1 July 2007. The column headed " In this situation " in table item 5A formerly read:

CGT event happens to CGT asset in connection with the demutualisation of a mutual entity other than an insurance company

S 112-97 amended by No 45 of 2008, s 3 and Sch 5 item 3, by substituting " complying superannuation/FHSA asset pool " for " virtual PST " in table item 21, effective 26 June 2008.

S 112-97 amended by No 164 of 2007 , s 3 and Sch 1 item 59, by inserting table item 23, effective 25 September 2007.

S 112-97 amended by No 79 of 2007 , s 3 and Sch 8 item 16, by inserting table item 22A, applicable to amounts paid by a participant under a forestry managed investment scheme on or after 1 July 2007. However, the amendment does not apply if any other amounts were paid by the participant or any other participant under the scheme before 1 July 2007.

S 112-97 (table) amended by No 15 of 2007, s 3 and Sch 1 items 191 to 193, by substituting " section 295-85 of the Income Tax (Transitional Provisions) Act 1997 " for " section 308 " in table item 13, substituting " complying approved deposit fund or pooled superannuation trust " for " ADF or PST " and substituting " section 295-100 of the Income Tax (Transitional Provisions) Act 1997 " for " section 311 " in table item 14, applicable to the 2007-2008 income year and later years.

S 112-97 amended by No 168 of 2006 , s 3 and Sch 4 item 38A, by inserting table item 28, applicable to CGT events that happen on or after 12 December 2006.

S 112-97 amended by No 101 of 2006 , s 3 and Sch 2 item 696, by substituting table item 10 for table items 10 and 11 in order to amend references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .

S 112-97 amended by No 58 of 2006 , s 3 and Sch 7 item 73, by inserting " of Schedule 2H " after " Division 326 " in table item 5A, effective 22 June 2006.

S 112-97 amended by No 41 of 2005, No 101 of 2004, No 133 of 2003, No 173 of 2000, No 89 of 2000, No 169 of 1999, No 103 of 1999, and inserted by No 46 of 1998.

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