The improvement threshold is a value used to determine when a capital improvement to a pre-capital gains tax asset may be treated as a separate asset for CGT purposes under section 108-70 of ITAA 1997 and for section 108-75 regarding capital improvements to CGT assets for which a rollover may be available.
A “pre-CGT asset” is an asset acquired before the commencement of the CGT rules on 20 September 1985.
The improvement threshold is indexed annually and announced before the commencement of the financial year to which it applies.
On the occurrence of a CGT event (e.g. a sale) improvements to pre-CGT assets are treated separately as taxable CGT assets where the indexed cost base of the improvement is more than BOTH of:
- the improvement threshold for the income year of the CGT event, AND
- 5% of the amount of money and property (i.e. consideration) received
Capital improvements for these purposes can include intangible assets (TD 2017/1).
Pre-CGT Improvement Thresholds
| Income Year | Threshold | Ref |
| 2024-25 | $182,665 | indexation formula |
| 2023-24 | $174,465 | indexation formula |
| 2022-23 | $162,899 | indexation formula |
| 2021-22 | $156,784 | indexation formula |
| 2020-21 | $155,849 | indexation formula |
| 2019-20 | $153,093 | indexation formula |
| 2018-19 | $150,386 | TD 2018/8 |
| 2017-18 | $147,582 | TD 2017/16 |
| 2016-17 | $145,401 | TD 2016/12 |
| 2015-16 | $143,392 | TD 2015/13 |
| 2014-15 | $140,443 | TD 2014/16 |
| 2013-14 | $136,884 | TD 2013/19 |
Further information
See – Property improvements and additions
Earlier years
| Income Year | Threshold |
| 2012-13 | $134,200 |
| 2011–12 | $130,418 |
| 2010–11 | $126,619 |
| 2009–10 | $124,258 |
| 2008–09 | $119,594 |
| 2007–08 | $116,337 |
| 2006–07 | $112,512 |
| 2005–06 | $109,447 |
| 2004–05 | $106,882 |
| 2003–04 | $104,377 |
| 2002–03 | $101,239 |
| 2001–02 | $97,721 |
| 2000–01 | $92,802 |
| 1999–2000 | $91,072 |
| 1998–99 | $89,992 |
| 1997–98 | $89,992 |
| 1996–97 | $88,227 |
| 1995–96 | $84,347 |
| 1994–95 | $82,290 |
| 1993–94 | $80,756 |
| 1992–93 | $80,036 |
| 1991–92 | $78,160 |
| 1990–91 | $73,459 |
| 1989–90 | $68,018 |
| 1988–89 | $63,450 |
| 1987–88 | $58,859 |
| 1986–87 | $53,950 |
| 1985–86 | $50,000 |
This page was last modified 2024-06-22