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 124-142   ASGE licence etc. - cost base of aquifer access licence etc.  

124-142(1)  
The first element of the cost base and reduced cost base of the new licence that is covered under subsection 124-140(3) is the total of the cost bases of the original licences.

Note:

For the purposes of this section, the cost base of each original licence that has an ineligible part is reduced in accordance with subsection 124-150(4) of the Income Tax Assessment Act 1997 .

124-142(2)  
The cost base and reduced cost base of any new licence that is not covered under subsection 124-140(3) is nil.

124-142(3)  
Subsections (4) and (5) apply if:


(a) there was more than one original licence; and


(b) some of the original licences were acquired before 20 September 1985; and


(c) subsection 124-165(2) of the Income Tax Assessment Act 1997 applies in relation to the new licence that is covered under subsection 124-140(3) (splitting that licence into 2 separate CGT assets).

124-142(4)  
For the purposes of subsection (2), treat the asset that is taken under paragraph 124-165(2)(a) of that Act to have been acquired on or after 20 September 1985 as a new licence that is covered under subsection 124-140(3) of this Act.

124-142(5)  
Work out the first element of the cost base and reduced cost base of that asset in accordance with subsection 124-165(3) of that Act.


 

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