Private ruling: Compulsory land acquisition compensation payment
Date of advice: 3 May 2019
Published: June 2019
Ruling period: 1 July 2018 to 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Does the lump sum payment received as a result of the compulsory acquisition of the land A under the relevant legislation assessable under the capital gain tax provision (CGT)? | A1: Yes, the undissected lump sum represents a compensation received for the disposal of the land under the CGT provisions in Part 3-1 of the Income Tax Assessment Act 1997 . For any part of the land acquired before 20 September 1985, any capital gain or capital loss will be disregarded for CGT purposes.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You owned land A. The property was acquired before 20 September 1985 by several members of the family. The land is now held in both post and pre CGT interest. The property was compulsorily acquired after 19 September 1985, by government agency A. You entered into negotiations as to compensation payable and you accepted an undissected lump sum offer to settle all components of your claims. You provided a copy of the Deed.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 10-5 | Income Tax Assessment Act 1997 section 102-5 | Income Tax Assessment Act 1997 section 104-10