Water entitlements before 7 December 2010

If your water entitlement was replaced or reduced between 1 July 2005 and 7 December 2010, and you returned a capital gain, you can choose to amend your income tax return for the year in which you reported that gain.

If the replacement or reduction occurred after 7 December 2010, the rollover applies automatically.

Reported capital gain on replacement or reduction of entitlements between 2005–2010

If you reported a capital gain for the replacement or reduction of water entitlements when lodging your income tax return, you are entitled to:

  • amend your income tax return for that year
  • obtain a rollover at the point you replaced or reduced your entitlement.

The relevant income years are 2005–06 to 2009–10 inclusively.

Termination fees

You can include termination fees in the calculation of your cost base where the capital gains tax (CGT) event happens on or after 1 July 2008 and on or before 7 December 2010.

If you reported a capital gain or loss in the income years 2009 and 2010 as a result of a CGT asset ending and you paid a termination fee to the third party, you can request an amendment to your returns.

For the 2010–11 year, you can choose to include the termination fees in your cost base or reduced cost base where your CGT event occurs on or before 7 December 2010.

After 7 December 2010, you can include termination fees as an incidental cost of your ownership of a CGT asset happening.

Late assessments

If you are outside the time in which we amend your assessment for the year the relevant period occurred, you will need to request an extension of time to amend. Go to extension of time to object for more information.

See also:

You can also phone us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday.

    Last modified: 24 Aug 2016QC 24125