• Legal database
Legal database
Disclaimer
This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1051459684373

Date of advice: 28 November 2018

Ruling

Subject: Sustainable rural water use and infrastructure program

The Commissioner has ruled on whether:

    1. an entity is a participant in a Sustainable Rural Water Use and Infrastructure Program agreement for the purposes of section 59-65 of the Income Tax Assessment Act 1997 (ITAA 1997)

    2. a transaction will constitute the disposal of a capital gains tax asset (CGT event A1)

    3. section 26-100 of the ITAA 1997 will be satisfied such that expenditure is not deductible

    4. section 116-30 of the ITAA 1997 will apply to treat an entity as having received market value

    5. section 112-20 of the ITAA 1997 will apply to modify the cost base of an asset to the equivalent market value, and

    6. amounts will be non-assessable non-exempt income.

Relevant legislative provisions

Section 6-23 of the Income Tax Assessment Act 1997

Section 26-100 of the Income Tax Assessment Act 1997

Division 59 of the Income Tax Assessment Act 1997

Section 104-10 of the Income Tax Assessment Act 1997

Section 112-20 of the Income Tax Assessment Act 1997

Division 116 of the Income Tax Assessment Act 1997

Division 118 of the Income Tax Assessment Act 1997

Section 124-1105 of the Income Tax Assessment Act 1997


Back to top