Water entitlement reduction or replacement - CGT rollover

Can I obtain CGT rollover for a water entitlement?

You may be able to obtain capital gains tax (CGT) rollover when you:

• replace your water entitlement, including by transformation
• reduce your water entitlements.

Transformation is the process by which an irrigator permanently changes their rights to water against an irrigation infrastructure operator (operator) into a statutory licence held by an entity other than the operator.

If your water entitlement was replaced or reduced between 1 July 2005 and 7 December 2010, you may have a choice to make.