Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 2/2)
Character Range: 2777278–2779240

can include giving property: see section 103‑5.

132‑10  Grant of a long‑term lease
 (1) These rules apply if *CGT event F2 happens for a lessor of property.
 (2) For any later *CGT event that happens to the land or the lessor's lease of it, its *cost base and *reduced cost base (including the cost base and reduced cost base of any building, part of a building, structure or improvement that is treated as a separate *CGT asset) excludes:
 (a) any expenditure incurred before *CGT event F2 happens; and
 (b) the *cost of any *depreciating asset for which the lessor has deducted or can deduct an amount for the asset's decline in value under this Act.
Note: Subdivision 108‑D sets out when a building, structure or improvement is treated as a separate CGT asset.
 (3) The fourth element of the property's *cost base and *reduced cost base includes any payment by the lessor to the lessee to vary or waive a term of the lease or for the forfeiture or surrender of the lease, reduced by the amount of any *input tax credit to which the lessor is entitled for the variation or waiver.
 (4) The expenditure or payment can include giving property: see section 103‑5.

132‑15  Lessee of land acquires reversionary interest of lessor
 (1) This table sets out what happens if:
 (a) the lessee of land *acquires the reversionary interest of the lessor in the land; and
 (b) Subdivision 124‑J (roll‑over provisions for Crown leases) does not apply to the acquisition.

Lessee acquires reversionary interest of lessor
                                                                                                          The lessee is taken to have *acquired the land at this time:
                                                                                                                                                                        The lessee is taken to have acquired the land for:
Item                                             In this situation: