INCOME TAX ASSESSMENT ACT 1997 - SECT 124.70 Events giving rise to a roll - over

INCOME TAX ASSESSMENT ACT 1997 - SECT 124.70

  (1)   You may be able to choose a roll - over if one of these events happens to a * CGT asset (the original asset ) you own:

  (a)   it is compulsorily * acquired by an * Australian government agency;

  (aa)   it is compulsorily acquired by an entity (other than an Australian government agency or a * foreign government agency) under a power of compulsory acquisition conferred by a law covered under subsection   (1A);

  (b)   it, or part of it, is lost or destroyed;

  (c)   you * dispose of it to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:

  (i)   the disposal takes place after a notice was served on you by or on behalf of the entity;

  (ii)   the notice invited you to negotiate with the entity with a view to the entity acquiring the asset by agreement;

  (iii)   the notice informed you that if the negotiations were unsuccessful, the asset would be compulsorily acquired by the entity;

  (iv)   the compulsory acquisition would have been under a power of compulsory acquisition conferred by a law covered under subsection   (1A);

  (ca)   you dispose of it to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:

  (i)   the asset is land over which a mining lease was compulsorily granted;

  (ii)   the lease significantly affected your use of the land;

  (iii)   the lease was in force just before the disposal;

  (iv)   the entity to which you dispose of the land was the lessee under the lease;

  (cb)   you dispose of it to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:

  (i)   the asset is land over which a mining lease would have been compulsorily granted if you had not disposed of it;

  (ii)   that lease would have significantly affected your use of the land;

  (iii)   the entity to which you dispose of the land would have been the lessee under the lease.

  (d)   if it is a lease granted to you by an * Australian government agency under an * Australian law--the lease expires and is not renewed.

Note 1:   There are no roll - over consequences if you make a capital loss from the event.

Note 2:   Section   103 - 25 tells you when you have to make the choice.

  (1A)   A law is covered under this subsection if it is:

  (a)   an * Australian law (other than Chapter   6A of the Corporations Act 2001 ); or

  (b)   a * foreign law (other than a foreign law corresponding to Chapter   6A of the Corporations Act 2001 ).

  (2)   You must receive money or another * CGT asset (except a * car, motor cycle or similar vehicle), or both:

  (a)   as compensation for the event happening; or

  (b)   under an insurance policy against the risk of loss or destruction of the original asset.

Note:   There are other requirements that must be satisfied if:

•   you receive money: see section   124 - 75; or

•   you receive another CGT asset: see section   124 - 80.

  (3)   The requirement in subsection   (4) must be satisfied if:

  (a)   you are a foreign resident just before the event happens; or

  (b)   you are the trustee of a trust that is a * foreign trust for CGT purposes for the income year in which the event happens.

  (4)   The original asset must be * taxable Australian property just before the event happens. The other asset must be taxable Australian property just after you * acquire it.