Tax Laws Amendment (2007 Measures No. 5) Act 2007 (164 of 2007)

Schedule 7   Statutory licences

Part 1   Main amendments

Income Tax Assessment Act 1997

3   At the end of Subdivision 124-C

Add:

124-145 Rollover consequences - capital gain or loss disregarded

A *capital gain or *capital loss you make from the original licence (or from each of the original licences) is disregarded.

124-150 Rollover consequences - partial roll-over

(1) You can obtain only a partial roll-over in relation to an original licence if the *capital proceeds for that licence includes something (the ineligible proceeds ) other than a new licence or new licences. There is no roll-over for that part (the ineligible part ) of the licence for which you received the ineligible proceeds.

Note: If there is more than one original licence, some or all of those original licences may each have an ineligible part.

(2) The *cost base of the ineligible part is that part of the cost base of the original licence as is reasonably attributable to the ineligible part.

(3) The *reduced cost base of the ineligible part is that part of the reduced cost base of the original licence as is reasonably attributable to the ineligible part.

(4) For the purposes of sections 124-155 and 124-165, for each original licence that has an ineligible part:

(a) reduce the *cost base of that licence (just before the *CGT event that happened in relation to it) by so much of that cost base as is attributable to that ineligible part; and

(b) reduce the *reduced cost base of that licence (just before the CGT event that happened in relation to it) by so much of that reduced cost base as is attributable to that ineligible part.

124-155 Roll-over consequences - all original licences were post-CGT

(1) This section applies if you *acquired the original licence (or all of the original licences) on or after 20 September 1985.

(2) The first element of the *cost base of the new licence (or of each of the new licences) is such amount as is reasonable having regard to:

(a) the total of the cost bases of all the original licences; and

(b) the number, *market value and character of the original licences; and

(c) the number, market value and character of the new licences.

(3) The first element of the *reduced cost base of the new licence (or of each of the new licences) is such amount as is reasonable having regard to:

(a) the total of the reduced cost bases of all the original licences; and

(b) the number, *market value and character of the original licences; and

(c) the number, market value and character of the new licences.

124-160 Roll-over consequences - all original licences were pre-CGT

If you *acquired the original licence (or all of the original licences) before 20 September 1985, you are taken to have acquired the new licence (or all of the new licences) before that day.

124-165 Roll-over consequences - some original licences were pre-CGT, others were post-CGT

(1) This section applies if:

(a) there was more than one original licence; and

(b) you *acquired one or more of the original licences before 20 September 1985; and

(c) you acquired one or more of the original licences on or after that day.

(2) Each new licence is taken to be 2 separate *CGT assets that are both *statutory licences:

(a) one (which you are taken to have *acquired on or after 20 September 1985) representing the extent to which you acquired the original licences on or after that day; and

(b) another (which you are taken to have acquired before that day) representing the extent to which you acquired the original licences before that day.

(3) The first element of the *cost base and *reduced cost base of the *CGT asset mentioned in paragraph (2)(a) in relation to a new licence is worked out under the formula:

Total post-CGT cost base x (Market value of new licence / Market value of all new licences)

where:

market value of all new licences is the total of the *market values of all of the new licences.

market value of new licence is the *market value of the new licence to which the *CGT asset mentioned in paragraph (2)(a) relates.

total post-CGT cost base is the total of the *cost bases of all the original licences that you *acquired on or after 20 September 1985.