Final answer:
Eligibility for the CGT indexation method, applicable to assets acquired before 21 September 1999, includes individuals, companies, trusts, and partnerships, not just companies alone. Option 4 is incorrect as the method is applicable, but it has limitations based on the acquisition date of assets. Always consult with a tax professional for the most current regulations.
Step-by-step explanation:
The question revolves around the eligibility of different entities for the Capital Gains Tax (CGT) indexation method. The CGT indexation method allows for the adjustment of the cost base of an asset for inflation up to September 1999. It applies to assets acquired before 21 September 1999 and is utilized to calculate the capital gain upon disposal of the asset.
Option 1 suggests that individuals and companies are eligible for the CGT indexation method. However, this was correct only until the method was discontinued for assets acquired after 11.45 am (by legal time in the ACT) on 21 September 1999. For assets acquired before this time, individuals and companies could use indexation to calculate their capital gain.
Option 2, stating that only companies are eligible, is incorrect because individuals, as well as companies, were historically able to use this method.
As for Option 3, trusts and partnerships may also be eligible to use the indexation method, provided the specific asset was acquired before the cut-off date.
Option 4 is incorrect because the CGT indexation method is indeed applicable to certain entities. However, the method is no longer available for assets acquired after the 1999 cut-off date.
It’s important to note that the specifics can vary by jurisdiction and any changes in tax law. Hence, it's always recommended to consult with a tax professional or check the latest regulations pertaining to CGT indexation.