Income Tax Assessment Act 1997



Division 124 - Replacement-asset roll-overs  

Subdivision 124-C - Statutory licences  

SECTION 124-140   New statutory licences  


There is a roll-over if:

(a) your ownership of one or more *statutory licences (each of which is an original licence ) ends, resulting in *CGT event C2 happening to the licence (or to each of the licences as part of an *arrangement); and

(b) as a result of the CGT event or events, you are issued one or more new licences (each of which is a new licence ) for the original licence (or original licences); and

(c) the new licence authorises (or the new licences taken together authorise) substantially similar activity as that authorised by the original licence (or by the original licences taken together).

Note 1:

If there has been a capital improvement to the original licence: see section 108-75 .

Note 2:

Subdivision 124-C of the Income Tax (Transitional Provisions) Act 1997 modifies this roll-over for certain water-related licences. A separate roll-over for other water entitlements is provided in Subdivision 124-R of this Act.



(a) you are a foreign resident just before the *CGT event happens (or just before one or more of the CGT events happens); or

(b) you are the trustee of a trust that is a *foreign trust for CGT purposes for the income year in which the event happens (or for an income year in which one or more of those events happens);

there is no roll-over under this section unless the conditions in subsection (1B) are satisfied.


The conditions are that:

(a) if there was only one original licence - the licence must be *taxable Australian property just before the *CGT event happens; and

(b) if there was more than one original licence - each original licence must be taxable Australian property just before the CGT event in relation to it happens; and

(c) if there is only one new licence - the licence must be taxable Australian property just after you *acquire it; and

(d) if there is more than one new licence - each new licence must be taxable Australian property just after you acquire it.

The first element of the *cost base and *reduced cost base of the new licence includes any amount you paid to get it (which can include giving property: see section 103-5 ).

A statutory licence is an authority, licence, permit or quota (except a lease or a *mining entitlement or *prospecting entitlement) granted by:

(a) an *Australian government agency under an *Australian law; or

(b) a *foreign government agency under a *foreign law.

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