Tax Returns

Tax Preparation Service

Late Tax Returns

 

Business & Investment Entities

Companies

Trusts

Self Managed Super Funds

 

ATO Resources

Taxation Rulings

Taxation Determinations

 
 

TD 2009/12: Income tax: capital gains: what is the improvement threshold for the 2009-10 income year under section 108-85 of the Income Tax Assessment Act 1997?

 

 Please note that the PDF version is the authorised version of this ruling.

 

FOI status: may be released
 

Preamble

 

Exclamation This publication provides you with the following level of protection:

This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953.

A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes.

If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.

 

Ruling

1. For the 2009-10 income year, the improvement threshold is $124,258.

Date of effect

2. This Determination applies for the 2009-10 income year.

Commissioner of Taxation

3 June 2009

Appendix 1 - Explanation

 

ExclamationThis Appendix is provided as information to help you understand how the Commissioner's view has been reached. It does not form part of the binding public ruling.

 

Explanation

3. For the 2009-10 income year, the improvement threshold is $124,258.

4. The improvement threshold is determined for the purposes of section 108-70 of the Income Tax Assessment Act 1997 (ITAA 1997) (about when a capital improvement to a pre-CGT asset is a separate asset) and section 108-75 of the ITAA 1997 (about capital improvements to CGT assets for which a rollover may be available).

5. The improvement threshold amount must be indexed annually - see subsection 108-85(2) of the ITAA 1997. Subdivision 960-M of the ITAA 1997 (about indexation) provides guidance on how to index the amounts and how to calculate the indexation factor - see sections 960-270 and 960-275 of the ITAA 1997.

6. This Determination must be published before the 2009-10 financial year begins - see subsection 108-85(3) of the ITAA 1997.

Not previously issued as a draft

 

Previous Rulings/Determinations:

 

TD 94/56

 

TD 95/23

 

TD 96/30

 

TD 97/12

 

TD 98/13

 

TD 1999/29

 

TD 2000/25

 

TD 2001/12

 

TD 2002/12

 

TD 2003/13

 

TD 2004/15

 

TD 2005/20

 

TD 2006/41

 

TD 2007/19

 

TD 2008/13

References

ATO references: 
NO  2009/5135

ISSN: 1038-8982

Subject References: 
capital gains tax 
CGT assets 
indexation 
improvement threshold 
separate CGT asset

Legislative References: 
ITAA 1997 108-70 
ITAA 1997 108-75 
ITAA 1997 108-85 
ITAA 1997 108-85(2) 
ITAA 1997 108-85(3) 
ITAA 1997 Subdivision 960-M 
ITAA 1997 960-270 
ITAA 1997 960-275 
TAA 1953 

 

© Commonwealth of Australia

This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non-commercial use or use within your organisation. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved.

Requests and inquiries concerning reproduction and rights should be addressed to Commonwealth Copyright Administration, Attorney General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca

 

 

C & P Taxation Services

133 Alexander Street

CROWS NEST NSW

Phone (02) 9965 7261

 

 

 

 

The information contained in this website is intended only as a guide for small business, and should not be relied on to prepare tax returns in accordance with Australian taxation law. It is recommended that professional advice is sought by an accountant and registered tax agent regarding GST issues, capital gains tax and tax deductions. The publishers accept no responsibility for errors, omissions or any damages caused by the improper use of this guide.