The cost base of a CGT asset is made up of the following five elements:
Incidental costs include but are not limited to:
We show some incidental costs as a deductible expense in an investor’s Tax Report. These expenses will not be recorded by us as an incidental expense in any asset’s cost base.
Brokerage may be incurred on the purchase or disposal of a CGT asset. We report this as an increase in cost base or reduction in capital proceeds respectively.
Any stamp duty which has been incurred may need to be considered when determining your taxable position.
As not all investor’s circumstances are the same, we strongly recommend investors seek independent taxation advice to determine whether this treatment is appropriate.
The following may reduce the cost base of an asset:
These amounts are typically distributed through managed funds (including ETFs) and unit trusts. They may also be distributed through listed securities. These amounts are non-assessable income for investors.
Tax deferred amounts, for example, may arise from amounts associated with building allowances. Returns of capital may arise when a company or trust wishes to reduce the capital on the balance sheet.
We report AMIT cost base net amounts as ‘AMIT adjustments’ on your tax report. These amounts may also increase your tax cost base – please refer to the Tax Guide for further information.
Please note that tax free amounts will only reduce the reduced cost base of an asset when the asset is sold and the investor is in a capital loss position as a result of the sale.
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