Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 118 - Exemptions  

Subdivision 118-B - Main residence  

Compulsory acquisitions of adjacent land only

SECTION 118-250   Compulsory acquisitions of adjacent land  

118-250(1)    

This section applies to the *CGT event and the exempt land if the CGT event involves:

(a) the compulsory *acquisition of the exempt land by:

(i) an *Australian government agency; or

(ii) an entity under a power conferred by an *Australian law; or

(b) you *disposing of the exempt land to an entity in circumstances meeting all of these conditions:

(i) the disposal takes place after a notice was served on you by or on behalf of the entity;

(ii) the notice invited you to negotiate with the entity with a view to the entity acquiring the exempt land by agreement;

(iii) the notice informed you that if the negotiations were unsuccessful, the exempt land would be compulsorily acquired by the entity;

(iv) the compulsory acquisition would have been under a power of compulsory acquisition conferred by an Australian law.

Note:

For paragraph (b), the entity may be an Australian government agency.

118-250(2)    

This section applies to the *CGT event and the exempt land if the CGT event involves:

(a) your *ownership interest in the exempt land being compulsorily cancelled (however described) or varied (however described) by:

(i) an *Australian government agency; or

(ii) an entity under a power conferred by an *Australian law; or

(b) you surrendering (however described) or varying (however described) your ownership interest in the exempt land in circumstances meeting all of these conditions:

(i) the surrender or variation takes place after a notice was served on you by or on behalf of an entity;

(ii) the notice invited you to negotiate with the entity with a view to you agreeing to surrender or vary your ownership interest;

(iii) the notice informed you that if the negotiations were unsuccessful, your ownership interest would be compulsorily cancelled, or varied, under a power conferred by an Australian law.

Note:

For paragraph (b), the entity may be an Australian government agency.

118-250(3)    

This section applies to the *CGT event and the exempt land if the CGT event involves:

(a) an interest or right in or relating to the exempt land being compulsorily conferred on:

(i) an *Australian government agency; or

(ii) an entity under a power conferred by an *Australian law; or

(b) you conferring on an entity an interest or right in or relating to the exempt land in circumstances meeting all of these conditions:

(i) the conferral takes place after a notice was served on you by or on behalf of an entity;

(ii) the notice invited you to negotiate with the entity with a view to you agreeing to confer an interest or right in or relating to the exempt land;

(iii) the notice informed you that if the negotiations were unsuccessful, an interest or right in or relating to the exempt land would be compulsorily conferred on the entity under a power conferred by an Australian law.

Note:

For paragraph (b), the entity may be an Australian government agency.

118-250(4)    

This section applies to the *CGT event and the exempt land if:

(a) your *ownership interest in the exempt land:

(i) was conferred on you by an *Australian government agency; and

(ii) had a limited, but renewable, period of operation; and

(b) the CGT event involves that ownership interest not being renewed by that agency.