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Water entitlement reduction or replacement: CGT rollover

If you replace, transform or reduce your water entitlement you may be able to rollover any capital gain you make.

Last updated 23 August 2016

You may be able to obtain capital gains tax (CGT) rollover for a water entitlement when you:

  • replace your water entitlement, including by transformation
  • reduce your water entitlements.

Transformation is the process by which an irrigator permanently changes their rights to water against an irrigation infrastructure operator (operator) into a statutory licence held by an entity other than the operator.

If your water entitlement was replaced or reduced between 1 July 2005 and 7 December 2010, you can choose to amend your income tax return for the year you reported the gain. See Water entitlements before 7 December 2010.

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