• 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
    • 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 capital gains tax (CGT) consequences.

    Exclusions from the definition of statutory licence are:

    • a lease
    • a mining or prospecting entitlement.

    These are excluded as there are special statutory rollover relief provisions applicable to Crown leases and to prospecting and mining entitlements.

      Last modified: 21 Jun 2016QC 21301