(1) CGT event F5 happens if a lessor receives a payment from the lessee for agreeing to vary or waive a term of the lease.
The payment can include giving property: see section 103-5.
(2) The time of the event is when the term is varied or waived.
(3) The lessor makes a capital gain if the * capital proceeds from the event are more than the expenditure the lessor incurs in relation to the variation or waiver. The lessor makes a capital loss if those capital proceeds are less .
Example: You own a shopping centre. The lessee of a shop in the centre pays you $10,000 for agreeing to change the terms of its lease. You incur expenses of $1,000 for a solicitor and $500 for a valuer. You make a capital gain of $8,500.
(4) The expenditure can include giving property: see section 103-5. However, it does not include an amount you have received as * recoupment of it and that is not included in your assessable income.
(5) A * capital gain or * capital loss the lessor makes is disregarded if:
(a) the lease was granted before 20 September 1985; or
(b) for a lease that has been renewed or extended--the start of the last renewal or extension occurred before that day.
Table of sections
104-135 Capital payment for shares: CGT event G1
104-145 Liquidator or administrator declares shares or financial instruments worthless: CGT event G3