Capital Additions
Capital Additions refers to the creation of items of expenditure to be included in the cost base of an asset which are in addition to the purchase price of the asset.
Non-residents may not add parcels of shares purchased at different times by using the Capital Additions functionality. In the case of shares purchased in different lots at different times, each lot must be entered as a separate transaction in order that the number of days each lot was held can be accurately calculated and a correct reduced discount arrived at where there are periods of Australian residency for those assets sold on or after 8 May 2012. Failure to do this will result in an incorrect calculation of the CGT discount allowed.
Indexation, where it applies, is not available for capital additions:
that were purchased on or after 21 September 1999, or
that are calculated under the Discount method
The cost base of an asset is the sum of such items as:
The purchase price of the asset (the deemed cost of acquiring the asset)
Capital costs of maintaining a right over or title to the asset
The costs of capital improvements (not repairs) made to the asset
Incidental costs associated with acquiring or disposing of the asset, such as:
Costs of advertising to find a seller or a buyer
Fees paid for professional services related to the transaction (for example, real estate agents, brokers, valuers, solicitors)
Fees incurred only after 30 June, 1989 for tax related advice from a recognised professional tax adviser regarding the transaction.
Costs of transferring asset ownership (for example, stamp duty)
Current expenses (only for assets acquired on or after 21 August, 1991). These expenses include costs such as:
Interest on money borrowed to purchase the asset
Repairs, maintenance and insurance premiums
Current expenses do not apply to listed and non-listed personal-use assets. They cannot be indexed or used to calculate a capital loss. Any current expenses which are allowed or have been allowed as tax deductions must not be included as part of the capital gains tax cost base.
| Field | Description |
|---|---|
| Details | Refers to the description of the addition. Standard answers can be created in AE and Series 6 & 8 for details of all kinds. Click [F7] to select from the index of Standard answers, otherwise type the details. |
| Amount | Refers to the amount expended on the addition. |
| Date | Refers to the date that the additional expense was incurred. |