Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 2   Consolidation etc.

Part 11   Technical amendment of cost base and reduced cost base calculation

Income Tax Assessment Act 1997

62   At the end of section 110-25

Add:

Assume a CGT event for purposes of working out cost base at a particular time

(12) If:

(a) it is necessary to work out the *cost base at a particular time; and

(b) a *CGT event does not happen in relation to the asset at or just after that time;

assume, for the purpose only of working out the cost base at the particular time, that such an event does happen in relation to the asset at or just after that time.

Note 1: For example, in order to apply subsection (5) of this section or subsection 110-37(1), it is necessary for there to be a CGT event.

Note 2: The assumption that a CGT event happens does not have any consequence beyond that stated. For example, it does not mean that the asset is afterwards to be treated as having been acquired at the particular time with a first element of cost base equal to all of its former cost base elements.