Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 124 - Replacement-asset roll-overs  

Subdivision 124-L - Prospecting and mining entitlements  

Operative provisions

SECTION 124-730   What is the roll-over?  

124-730(1)    
The roll-over is mainly as specified in Subdivision 124-A .

124-730(2)    
However, you work out the *cost base and *reduced cost base of *CGT assets (that you are not taken to have *acquired before 20 September 1985) and that are part of the new entitlement a bit differently where section 124-720 or 124-725 applies.

124-730(3)    

The first element of your *cost base for each of those assets is:

CB of post-CGT original entitlement

×

Market value of separate asset Market value of all new assets

where:

CB of post-CGT original entitlement
is the sum of the *cost bases of the prospecting entitlements or mining entitlements (that were part of the original entitlement) and that you *acquired on or after 20 September 1985 (just before the original entitlement expired or was surrendered) reduced, if there is an excised part, by so much of those cost bases as is attributable to the excised part.

market value of all new assets
is the *market value of all *CGT assets (that you are not taken to have *acquired before 20 September 1985) that are part of the new entitlement just after you acquired them.

market value of separate asset
is the *market value of the particular asset just after you *acquired it.

124-730(4)    
The first element of the *reduced cost base of each of those assets is worked out similarly.