Income Tax Assessment Act 1997
This section sets out what happens if:
(a) a *CGT asset (the original asset ) is split into 2 or more assets (the new assets ); or
(b) a *CGT asset (also the original asset ) changes in whole or in part into an asset (also the new asset ) of a different nature;
and you are the beneficial owner of the original asset and each new asset.
You subdivide a block of land into 3 separate blocks. Each of those blocks is a new asset .
The splitting or change is not a *CGT event. 112-25(3)
You work out the *cost base and *reduced cost base of each new asset as follows: Method statement
Work out each element of the *cost base and *reduced cost base of the original asset at the time of the event referred to in subsection (1).
Apportion in a reasonable way each element to each new asset. The result is each corresponding element of the new asset's *cost base and *reduced cost base.
If 2 or more *CGT assets (the original assets ) are merged into a single asset (the new asset ) and you are the beneficial owner of the original assets and the new asset:
(a) the merger is not a *CGT event; and
(b) each element of the *cost base and *reduced cost base of the new asset (at the time of the merging) is the sum of the corresponding elements of each original asset.