Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p40
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 40/59)
Character Range: 2631890–2634824

Guide to Subdivision 124‑S

124‑1220  What this Subdivision is about
      There is roll‑over relief if an interest in a mining, quarrying or prospecting right is disposed of under an interest realignment arrangement.

Table of sections

Operative provisions
124‑1225 Disposals of interests under interest realignment arrangements
124‑1230 Roll‑over consequences—partial roll‑over
124‑1235 Roll‑over consequences—all original interests were post‑CGT and pre‑UCA
124‑1240 Roll‑over consequences—all original interests were pre‑CGT
124‑1245 Roll‑over consequences—original interests were of mixed CGT status, all were pre‑UCA
124‑1250 Roll‑over consequences—some original interests were pre‑UCA

Operative provisions

124‑1225  Disposals of interests under interest realignment arrangements
 (1) There is a roll‑over if:
 (a) *CGT event A1 happens because you *dispose of one or more assets each of which:
 (i) is an interest (an original interest) in a *mining, quarrying or prospecting right; and
 (ii) is an interest that you started to *hold before 1 July 2001; and
 (b) the disposal occurs under an *interest realignment arrangement.
 (2) The first element of the *cost base and *reduced cost base of an interest (a new interest) in a *mining, quarrying or prospecting right that you acquire under the *interest realignment arrangement includes any amount you paid to acquire the new interest.
Note 1: The rest of the first element is worked out under Subdivision 124‑A.
Note 2: Under subsections 124‑10(2) and 124‑15(2), a capital gain or capital loss you make from the original interest is disregarded.
 (3) The amount can include giving property: see section 103‑5. However, it does not include a *mining, quarrying or prospecting right that you dispose of under the *interest realignment arrangement.

124‑1230  Roll‑over consequences—partial roll‑over
 (1) You can obtain only a partial roll‑over in relation to an original interest if the *capital proceeds for that interest includes something (the ineligible proceeds) other than a new interest or new interests. There is no roll‑over for that part (the ineligible part) of the interest for which you received the ineligible proceeds.
Note: If there is more than one original interest, some or all of those original interests may each have an ineligible part.
 (2) The *cost base of the ineligible part is that part of the cost base of the original interest as is reasonably attributable to the ineligible part.
 (3) The *reduced cost base of the ineligible part is that part of the reduced cost base of the original interest as is reasonably attributable to the ineligible part.
 (4) For the purposes of sections 124‑1235 and 124‑1245, for each original interest that has an ineligible part:
 (a) reduce the *cost base of that interest (just before the *CGT event that happened in relation to it) by so much of that cost base as is attributable to that ineligible part; and