(1) If you receive another * CGT asset for the event happening, there are these consequences if you choose to obtain a roll-over.
(2) A * capital gain you make from the original asset is disregarded.
(3) If you * acquired the original asset on or after 20 September 1985:
(a) the first element of the other asset's * cost base is the original asset's cost base at the time of the event; and
(b) the first element of the other asset's * reduced cost base is the original asset's reduced cost base at the time of the event.
Note: There are special indexation rules for roll-overs: see Division 114.
Example: Steven bought land in 1999 for $100,000. In 2001 the government compulsorily acquires the land and gives him new land in return.
A capital gain he makes from the original land is disregarded. Suppose the original land's cost base when it is acquired is $120,000. The first element of the new land's cost base becomes $120,000.
(4) If you acquired the original asset before 20 September 1985, you are taken to have * acquired the other asset before that day.