Document ID: chunk:federal_register_of_legislation:C2010A00136:clause:2_6:p1
Version: federal_register_of_legislation:C2010A00136
Segment Type: clause
Provision Reference: sch 2 cl 6 (pt 1/6)
Character Range: 9792–12868

6  At the end of Division 124
Add:

Subdivision 124‑R—Water entitlements

Guide to Subdivision 124‑R

124‑1100  What this Subdivision is about
      There is a roll‑over if a CGT event happens to you because of something occurring in relation to one or more water entitlements. You do not need to own water entitlements for the event to happen to you.

Table of sections

Replacement case
124‑1105 Replacement water entitlements roll‑over
124‑1110 Roll‑over consequences—capital gain or loss disregarded
124‑1115 Roll‑over consequences—partial roll‑over
124‑1120 Roll‑over consequences—all original entitlements post‑CGT
124‑1125 Roll‑over consequences—all original entitlements pre‑CGT
124‑1130 Roll‑over consequences—some original entitlements pre‑CGT, others post‑CGT

Reduction case
124‑1135 Reduction in water entitlements roll‑over
124‑1140 Roll‑over consequences—capital gain or loss disregarded
124‑1145 Roll‑over consequences—all original entitlements post‑CGT
124‑1150 Roll‑over consequences—some original entitlements pre‑CGT, others post‑CGT

Variation to CGT asset case
124‑1155 Roll‑over for variation to CGT asset
124‑1160 Roll‑over consequences
124‑1165 Roll‑over consequences—partial roll‑over

Replacement case

124‑1105  Replacement water entitlements roll‑over

Automatic roll‑over for single water entitlements
 (1) There is a roll‑over if:
 (a) your ownership of a *water entitlement (the original entitlement) ends, resulting in a *CGT event happening; and
 (b) as a result of your ownership of the original entitlement ending, you *acquire one or more water entitlements (each of which is a new entitlement); and
 (c) if you are a foreign resident just before your ownership of the original entitlement ends, or you are the trustee of a trust that is a *foreign trust for CGT purposes for the income year in which your ownership of the original entitlement ends:
 (i) the original entitlement was *taxable Australian property just before you stopped owning it; and
 (ii) if there is only one new entitlement—the new entitlement is taxable Australian property just after you acquire it; and
 (iii) if there is more than one new entitlement—each new entitlement is taxable Australian property just after you acquire it; and
 (d) you have not chosen a roll‑over in relation to the original entitlement under subsection (2).

Elective roll‑over for bundled water entitlements
 (2) There is a roll‑over if:
 (a) your ownership of more than one *water entitlement (each of which is an original entitlement) ends, resulting in a *CGT event happening; and
 (b) as a result of your ownership of the original entitlements ending, you *acquire one or more water entitlements (each of which is a new entitlement); and
 (c) if you are a foreign resident just before your ownership of the original entitlements ends, or you are the trustee of a trust that is a *foreign trust for CGT purposes for the income year in which your ownership of the original entitlements ends:
 (i) each original entitlement was *taxable Australian property just before you stopped owning