INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 5B - Property installed on leased Crown land  

SECTION 160ZWC   TERMINATION ETC. OF CROWN LEASE FOLLOWED BY GRANT OF FRESH CROWN LEASE OR OF FREEHOLD TO LESSEE  

160ZWC(1)   When section applies.  

This section applies if:

(a) an entity holds land under a quasi-ownership right granted by an exempt Australian government agency or an exempt foreign government agency; and

(b) a unit of property is attached to the land; and

(c) the entity is the quasi-owner of the unit under subsection 42-310(1) of the Income Tax Assessment Act 1997 ; and

(d) the quasi-ownership right expires or is surrendered or terminated; and

(e) the expiry, surrender or termination is followed by:

(i) the grant to the entity of one or more fresh quasi-ownership rights over the land; or

(ii) the grant or transfer to the entity of an estate in fee simple in the land; and

(f) if the entity is not a partnership - apart from this section, the entity is taken, for the purposes of this Part, to have disposed of the entity's interest in the unit because of the expiry, surrender or termination of the quasi-ownership right; and

(g) if the entity is a partnership - apart from this section, a partner in the partnership is taken, for the purposes of this Part, to have disposed of the partner's interest in the unit because of the expiry, surrender or termination of the quasi-ownership right; and

(h) neither section 160ZZF nor section 160ZWA applies in relation to the disposal mentioned in paragraph (f) or (g).

160ZWC(2)   Entity not a partnership - CGT roll-over relief.  

If the entity is not a partnership:

(a) this Part does not apply in respect of the disposal by the entity of the entity's interest in the unit; and

(b) the Commissioner must take such steps as are necessary to grant CGT roll-over relief in relation to the entity in respect of the disposal of the entity's interest in the unit.

160ZWC(3)   Entity a partnership - CGT roll-over relief.  

If the entity is a partnership:

(a) this Part does not apply in respect of the disposal by a partner in the partnership of the partner's interest in the unit; and

(b) the Commissioner must take such steps as are necessary to grant CGT roll-over relief in relation to the partner in respect of the disposal of the partner's interest in the unit.

160ZWC(4)   CGT roll-over relief - steps to be taken.  

The steps that the Commissioner may take include:

(a) treating a particular asset as having been acquired by an entity or partner before 20 September 1985; or

(b) treating an entity or partner as having paid, as consideration in respect of the acquisition of an asset held by the entity or partner, an amount equal to:

(i) for the purpose of ascertaining whether a capital gain accrued to the entity or partner in the event of a subsequent disposal of the asset by the entity or partner - such amount as is ascertained in a manner that the Commissioner determines to be appropriate; or

(ii) for the purpose of ascertaining whether the entity or partner incurred a capital loss in the event of a subsequent disposal of the asset by the entity or partner - such amount as is ascertained in a manner that the Commissioner determines to be appropriate.

160ZWC(5)   Determination of consideration.  

A determination under paragraph (4)(b) may provide for the amount concerned to be ascertained in a different manner in different circumstances.