Capital gains tax (CGT) rollover: statutory licence holders

Information for statutory licence holders when your licence ends and is replaced.

You may be able to roll over your CGT obligations when:

• your statutory licence ends, and
• you are issued a new statutory licence authorising activities similar to those authorised under your original licence.

Depending on the conditions under which your licence ends, you may be able to:

• defer all or part of your CGT obligations, and
• roll over all or part of the cost base of your original licence.

What is a statutory licence?

A statutory licence is an authority, quota, licence or permit (except a lease or a mining or prospecting entitlement) granted by or on behalf of a government, or a government body under a law of the commonwealth, state, territory, or foreign country.

Governments grant a range of licences as part of the ongoing management of certain industries. Statutory licences may include but are not limited to:

• radio and television broadcasting licences
• taxi licences
• fishing permits or quotas
• oyster farming licences
• liquor licences
• water licences
• game licences, and
• import or export licences.

A statutory licence that allows you to carry on your business is an asset and any dealings with that licence will have CGT consequences.