Income Tax Assessment Act 1997
You may be able to choose a roll-over if one of these events happens to a *CGT asset (the original asset ) you own:
(a) it is compulsorily *acquired by an *Australian government agency;
(aa) it is compulsorily acquired by an entity (other than an Australian government agency or a *foreign government agency) under a power of compulsory acquisition conferred by a law covered under subsection (1A);
(b) it, or part of it, is lost or destroyed;
(c) you *dispose of it to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:
(i) the disposal takes place after a notice was served on you by or on behalf of the entity;
(ii) the notice invited you to negotiate with the entity with a view to the entity acquiring the asset by agreement;
(iii) the notice informed you that if the negotiations were unsuccessful, the asset would be compulsorily acquired by the entity;
(iv) the compulsory acquisition would have been under a power of compulsory acquisition conferred by a law covered under subsection (1A);
(ca) you dispose of it to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:
(i) the asset is land over which a mining lease was compulsorily granted;
(ii) the lease significantly affected your use of the land;
(iii) the lease was in force just before the disposal;
(iv) the entity to which you dispose of the land was the lessee under the lease;
(cb) you dispose of it to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:
(i) the asset is land over which a mining lease would have been compulsorily granted if you had not disposed of it;
(ii) that lease would have significantly affected your use of the land;
(iii) the entity to which you dispose of the land would have been the lessee under the lease.
(d) if it is a lease granted to you by an *Australian government agency under an *Australian law - the lease expires and is not renewed.
There are no roll-over consequences if you make a capital loss from the event.
Section 103-25 tells you when you have to make the choice.
A law is covered under this subsection if it is:
(a) an *Australian law (other than Chapter 6A of the Corporations Act 2001 ); or
(b) a *foreign law (other than a foreign law corresponding to Chapter 6A of the Corporations Act 2001 ).
You must receive money or another *CGT asset (except a *car, motor cycle or similar vehicle), or both:
(a) as compensation for the event happening; or
(b) under an insurance policy against the risk of loss or destruction of the original asset.
There are other requirements that must be satisfied if:
The requirement in subsection (4) must be satisfied if:
(a) you are a foreign resident just before the event 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.
The original asset must be *taxable Australian property just before the event happens. The other asset must be taxable Australian property just after you *acquire it.
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