Division 124 - Replacement-asset roll-overs  

Subdivision 124-A - General rules  

SECTION 124-10   Your ownership of one CGT asset ends  


There are these consequences (in most cases) if you can obtain a roll-over when your ownership of a *CGT asset (the original asset ) ends and you *acquire one or more CGT assets (the new assets ) in a situation covered by this Division.


A *car, motor cycle or similar vehicle must not be one of the new assets.

A *capital gain or a *capital loss you make from the original asset is disregarded.


If you *acquired the original asset on or after 20 September 1985, the first element of each new asset ' s *cost base is:

The original asset ' s cost base
(worked out when your ownership of it ended)
Number of new assets

The first element of each new asset ' s *reduced cost base is worked out similarly.

Note 1:

In some cases the amount you paid to acquire the new asset also forms part of the first element: see Subdivision 124-D (about strata title conversion).

Note 2:

There are modifications to the consequences in Subdivision 124-B (about compulsory acquisition, loss or destruction), Subdivision 124-C (about statutory licences), Subdivision 124-J (about Crown leases) and Subdivision 124-L (about prospecting and mining).

Note 3:

No other elements of the cost base of the new asset are affected by the roll-over.

Note 4:

There are special indexation rules for roll-overs: see Division 114 .

Note 5:

The reduced cost base may be modified for a roll-over happening after a demerger: see section 125-170 .

If you *acquired the original asset before 20 September 1985, you are taken to have acquired each new asset before that day.


A capital gain or loss you make from a CGT asset you acquired before 20 September 1985 is generally disregarded: see Division 104 . This exemption is removed in some situations: see Division 149 .


However, subsection (4) is taken never to have applied to a *share to which subsection 104-195(6) applies (CGT event J4).


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