The Australia Taxation Office has issued Taxation Determination (TD) 2017/1 concerning the capital gains tax (CGT) treatment of intangible capital improvements to pre-CGT assets. Pre-CGT assets are those acquired before 20 September 1985 (the date Australia introduced its capital gains tax). Subject to certain conditions, when a capital improvement is made to a pre-CGT asset, the improvement is treated as a separate asset for CGT purposes.
According to TD 2017/1, intangible capital improveme…