Pre-CGT Assets Improvement Thresholds

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 YearThresholdRef
2018-19$150,386TD 2018/8
2017-18$147,582TD 2017/16
2016-17$145,401TD 2016/12
2015-16$143,392TD 2015/13
2014-15$140,443TD 2014/16
2013-14$136,884TD 2013/19

Earlier years

 Income YearThreshold
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

 

Further information

See – Separate assets for CGT purposes

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This page was last modified 2018-08-15