Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

Division 124 - Replacement-asset roll-overs  

Subdivision 124-B - Asset compulsorily acquired, lost or destroyed  

When a roll-over is available

SECTION 124-70   Events giving rise to a roll-over  

124-70(1)    
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.

Note 1:

There are no roll-over consequences if you make a capital loss from the event.

Note 2:

Section 103-25 tells you when you have to make the choice.


124-70(1A)    


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 ).


124-70(2)    


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.

Note:

There are other requirements that must be satisfied if:

  • • you receive money: see section 124-75 ; or
  • • you receive another CGT asset: see section 124-80 .

  • 124-70(3)    
    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.


    124-70(4)    


    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.

     

    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.