Base cost is the amount against which any proceeds upon disposal are compared in order to determine whether a capital gain or loss has been realised.
- Acquisition cost
- Incidental costs of acquisition and disposal
- The remuneration of a surveyor, valuer, auctioneer, accountant, broker, agent, consultant or legal advisor, for services rendered
- Transfer costs
- Stamp duty, transfer duty or similar duty(for example, securities transfer tax)
- Advertising costs to find a seller or to find a buyer
- The cost of moving that asset from one location to another
- The cost of installing an asset, including the cost of foundations and supporting structures
- Donations tax paid in certain circumstances
- If that asset was acquired or disposed of by the exercise of an option (other than the exercise of an option acquired before the valuation date), the expenditure actually incurred on the acquisition of the option
- Value-added tax not allowed as an input deduction (section 23C)
- Capital costs of establishing, maintaining or defending title or right to an asset
These costs actually incurred in acquiring or creating an asset. For example, this could include the cost of purchasing an asset or the cost of erecting a building. The expenditure should not have been claimed against income.
Any of the following costs actually incurred as expenditure directly related to the acquisition or disposal of an asset.
- Cost of improvements or enhancements
- The improvement or enhancement must still be reflected in the asset’s state or nature at the time of its disposal.
- Valuation date value of an option
- Cost of ownership of assets used exclusively for business purposes, listed shares and units in a unit trust scheme
- These costs would include the cost of maintaining, repairing and protecting the asset, rates and taxes and interest. In the case of listed shares and units only one third of the expenditure is allowed.
- Certain amounts that have been included in the person’s income and amounts arising as a result of value shifting arrangements.