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Edited version of your written advice
Authorisation Number: 1051512561324
Date of advice: 3 May 2019
Ruling
Subject: Compulsory land acquisition compensation payment
Question
Does the lump sum payment received as a result of the compulsory acquisition of the land A under the relevant legislation assessable under the capital gain tax provision (CGT)?
Answer
Yes, the undissected lump sum represents a compensation received for the disposal of the land under the CGT provisions in Part 3-1 of the Income Tax Assessment Act 1997. For any part of the land acquired before 20 September 1985, any capital gain or capital loss will be disregarded for CGT purposes.
This ruling applies for the following period:
1 July 2018 to 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You owned land A.
The property was acquired before 20 September 1985 by several members of the family. The land is now held in both post and pre CGT interest.
The property was compulsorily acquired after 19 September 1985, by government agency A.
You entered into negotiations as to compensation payable and you accepted an undissected lump sum offer to settle all components of your claims.
You provided a copy of the Deed.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 10-5
Income Tax Assessment Act 1997 section 102-5
Income Tax Assessment Act 1997 section 104-10