Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

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

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Division 124 - Replacement-asset roll-overs

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Subdivision 124-R - Water entitlements

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History

Subdiv 124-R inserted by No 136 of 2010 , s 3 and Sch 2 item 6, applicable to CGT events that occur in the 2005-06 income year and later income years. No 136 of 2010 , s 3 and Sch 2 item 10 contains the following transitional provisions:

Transitional provisions - water entitlement roll-overs
(1)
Subsection 124-1105(1) and section 124-1135 of the Income Tax Assessment Act 1997 , as inserted, do not apply to you if:

(a) you stopped owning one or more water entitlements at any time in the period (the relevant period ):

(i) starting at the start of the 2005-06 income year; and

(ii) ending on 7 December 2010; and

(b) you choose that those provisions do not apply to you.

(2)
Section 124-1155 of the Income Tax Assessment Act 1997 , as inserted, does not apply to you if:

(a) the CGT event happened at any time in the period (the relevant period ):

(i) starting at the start of the 2005-06 income year; and

(ii) ending on 7 December 2010; and

(b) you choose that those provisions do not apply to you.

(3)
A choice under subitem (1) or (2) must be made by the later of:

(a) 12 months after 7 December 2010; and

(b) the time within which the Commissioner may, under section 170 of the Income Tax Assessment Act 1936 , amend your assessment for the income year in which the relevant period occurred.

Replacement case

SECTION 124-1120 Roll-over consequences - all original entitlements post-CGT

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124-1120(1)
In a situation covered by subsection 124-1105(1) , if you *acquired the original entitlement on or after 20 September 1985, the first element of the *cost base of the new entitlement (or of each of the new entitlements) is such amount as is reasonable having regard to:

(a) the cost base and *market value of the original entitlement; and

(b) the number and market value of the new entitlements; and

(c) any amount you paid to get the new entitlement (which can include giving property: see section 103-5 ).

124-1120(2)
In a situation covered by subsection 124-1105(2) , if you *acquired the original entitlements on or after 20 September 1985, the first element of the *cost base of the new entitlement (or of each of the new entitlements) is such amount as is reasonable having regard to:

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

(b) the number and *market value of the original entitlements; and

(c) the number and market value of the new entitlements; and

(d) any amount you paid to get the new entitlements (which can include giving property: see section 103-5 ).

124-1120(3)
In the situation covered by subsection 124-1105(1) or (2) , the first element of the *reduced cost base of the new entitlement (or of each of the new entitlements) is worked out similarly.

124-1120(4)
For the purposes of paragraphs (1)(b) and (2)(c), the *market value of the new entitlements is their *market value at the time you *acquired them.

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