Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

Division 132 - Leases  

SECTION 132-15   Lessee of land acquires reversionary interest of lessor  

132-15(1)    

This table sets out what happens if:

(a) the lessee of land *acquires the reversionary interest of the lessor in the land; and

(b) Subdivision 124-J (roll-over provisions for Crown leases) does not apply to the acquisition.

Lessee acquires reversionary interest of lessor
Item	In this situation:	The lessee is taken to have *acquired the land at this time:	The lessee is taken to have acquired the land for:
1	The lease was originally granted for 99 years or more	When the lease was granted or assigned to the lessee	Any premium the lessee paid for the grant or assignment of the lease, plus the amount the lessee paid to *acquire the reversionary interest
.
2	The lease was originally granted for less than 99 years	When the lessee *acquired the reversionary interest	(a)	if the lessee *acquired the lease after 19 September 1985 - any premium the lessee paid for the grant or assignment of the lease, plus the amount the lessee paid to acquire the reversionary interest; or
			(b)	if the lessee acquired the lease before 20 September 1985 - the *market value of the land when the lessee acquired it

132-15(2)    
All the payments can include giving property: see section 103-5 .

Note:

CGT events F1 to F5 deal specifically with leases. See also (in particular) CGT event C2 (about cancellation, surrender and similar endings).