The starting figure used to calculate a capital gain - purchase price plus acquisition costs (stamp duty, conveyancing) plus capital improvements during the hold, minus capital allowances claimed.
Defined across Div 110 ITAA 1997. For residential property: purchase price + acquisition costs (stamp duty, legal, inspections) + capital improvements during hold. Capital works deductions claimed under Div 43 reduce the cost base (s 110-25). Plant and equipment depreciation under Div 40 does not.