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INCOME TAX ASSESSMENT ACT 1997 - SECT 124.70

Events giving rise to a roll-over

             (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.



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