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

2   Subsection 124-140(1)

Repeal the subsection, substitute:

(1) There is a roll-over if:

(a) your ownership of one or more *statutory licences (each of which is an original licence ) ends, resulting in *CGT event C2 happening to the licence (or to each of the licences as part of an *arrangement); and

(b) as a result of the CGT event or events, you are issued one or more new licences (each of which is a new licence ) for the original licence (or original licences); and

(c) the new licence authorises (or the new licences taken together authorise) substantially similar activity as that authorised by the original licence (or by the original licences taken together).

Note: If there has been a capital improvement to the original licence: see section 108-75.

(1A) If:

(a) you are a foreign resident just before the *CGT event happens (or just before one or more of the CGT events happens); or

(b) you are the trustee of a trust that is a *foreign trust for CGT purposes for the income year in which the event happens (or for an income year in which one or more of those events happens);

there is no roll-over under this section unless the conditions in subsection (1B) are satisfied.

(1B) The conditions are that:

(a) if there was only one original licence - the licence must be *taxable Australian property just before the *CGT event happens; and

(b) if there was more than one original licence - each original licence must be taxable Australian property just before the CGT event in relation to it happens; and

(c) if there is only one new licence - the licence must be taxable Australian property just after you *acquire it; and

(d) if there is more than one new licence - each new licence must be taxable Australian property just after you acquire it.