Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 124.10

Your ownership of one CGT asset ends

  (1)   There are these consequences (in most cases) if you can obtain a roll - over when your ownership of a * CGT asset (the original asset ) ends and you * acquire one or more CGT assets (the new assets ) in a situation covered by this Division.

  (1A)   A * car, motor cycle or similar vehicle must not be one of the new assets.

  (2)   A * capital gain or a * capital loss you make from the original asset is disregarded.

  (3)   If you * acquired the original asset on or after 20   September 1985, the first element of each new asset's * cost base is:

Start formula start fraction The original asset's cost base (worked out when your ownership of it ended) over Number of new assets end fraction end formula

The first element of each new asset's * reduced cost base is worked out similarly.

Note 1:   In some cases the amount you paid to acquire the new asset also forms part of the first element: see Subdivision   124 - D (about strata title conversion).

Note 2:   There are modifications to the consequences in Subdivision   124 - B (about compulsory acquisition, loss or destruction), Subdivision   124 - C (about statutory licences), Subdivision   124 - J (about Crown leases) and Subdivision   124 - L (about prospecting and mining).

Note 3:   No other elements of the cost base of the new asset are affected by the roll - over.

Note 4:   There are special indexation rules for roll - overs: see Division   114.

Note 5:   The reduced cost base may be modified for a roll - over happening after a demerger: see section   125 - 170.

  (4)   If you * acquired the original asset before 20   September 1985, you are taken to have acquired each new asset before that day.

Note:   A capital gain or loss you make from a CGT asset you acquired before 20   September 1985 is generally disregarded: see Division   104. This exemption is removed in some situations: see Division   149.

  (5)   However, subsection   (4) is taken never to have applied to a * share to which subsection   104 - 195(6) applies (CGT event J4).


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