Division 10A - Timber operations and timber mill buildings  

Subdivision B - Timber mill buildings  


124JD(1)   Roll-over relief where CGT roll-over relief allowed.  

This section applies to the disposal of a building by a taxpayer (in this section called the transferor ) to another taxpayer (in this section called the transferee ) if:

(a) either:

(i) in a case where the transferor is not a partnership - section 160ZZM , 160ZZMA, 160ZZN or 160ZZO applies to the disposal of the building by the transferor; or

(ii) if the transferor is a partnership - the property is partnership property of the partnership and section 160ZZNA applies to the corresponding disposal, by all of the partners in the partnership, of their interests in the building; and

(b) subject to subsection (5), deductions have been allowed or are allowable under section 124JA to the transferor in respect of the building.

124JD(2)   No balancing charges or deductions.  

Section 124JB (which deals with balancing charges and deductions) does not apply to the disposal of the building by the transferor.

124JD(3)   Transferee to inherit certain characteristics from transferor.  

This Subdivision applies as if:

(a) the transferee had acquired the building for a consideration equal to the residual capital expenditure immediately before the disposal; and

(b) section 124JC had not been enacted.

124JD(4)   Disposal by transferee where no roll-over relief - inheritance of deductions.  


(a) after the disposal of the building to the transferee:

(i) the building is destroyed; or

(ii) the transferee disposes of the building; or

(iii) the use by the transferee of the building for the purpose for which it was primarily and principally purchased is otherwise terminated; and

(b) in the case of a disposal by the transferee - this section does not apply to the disposal;

then, for the purposes of the application of section 124JB in relation to the destruction, disposal or termination, the total of:

(c) the deductions allowed or allowable to the transferor under section 124JA in relation to the building; and

(d) if there have been 2 or more prior successive applications of this section - the deductions allowed or allowable to the prior successive transferors under section 124JA in relation to the building;

are taken to have been deductions allowed or allowable to the transferee under section 124JA in relation to the building.

124JD(5)   Second or subsequent application of section - paragraph (1)(b) does not apply.  

If, apart from this subsection, this section has applied to the disposal of the building to the transferee, then, in working out whether this section applies to a subsequent disposal of the building by:

(a) the transferee; or

(b) one or more subsequent successive transferees;

this section has effect as if paragraph (1)(b) (which deals with deductions) had not been enacted.


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