INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 124 - Replacement-asset roll-overs  

Subdivision 124-C - Statutory licences  

SECTION 124-141   ASGE licence etc - cost base of ineligible part  

124-141(1)  
For an original licence that has an ineligible part, the cost base of the ineligible part is the cost base of the original licence multiplied by the amount worked out under the formula:


Total ineligible proceeds
Total ineligible proceeds + Value of new licence

where:

total ineligible proceeds
is the total of the ineligible proceeds (as described in section 124-150 of the Income Tax Assessment Act 1997 ) in relation to all of the original licences that have an ineligible part.

value of new licence
is:


(a) if the new licence is an aquifer access licence mentioned in paragraph 124-40(3)(a) - the 2002 value assigned under the ASGE program to the new licence; or


(b) otherwise - the value of the new licence worked out in accordance with the regulations.

124-141(2)  
The regulations may specify one or more ways of working out the value of a licence (other than an aquifer access licence mentioned in paragraph 124-40(3)(a) ) for the purposes of this section.

124-141(3)  
For an original licence that has an ineligible part, the reduced cost base of the ineligible part is the reduced cost base of the original licence multiplied by the amount worked under the formula set out in subsection (1).




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