Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p36
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 36/59)
Character Range: 2621786–2624577

under this section if there is a roll‑over in relation to the water entitlement under Subdivision 124‑C (statutory licences).

Meaning of water entitlement
 (4) A water entitlement is a legal or equitable right that an entity owns that relates to water, including a right to:
 (a) receive water; or
 (b) take water from a water resource; or
 (c) have water delivered; or
 (d) deliver water;
and includes a right that must be owned by the entity in order to own a right covered by paragraph (a), (b), (c) or (d).
Example: Philip owns a share in Big Pump Irrigation Ltd. The share provides Philip with the right to receive dividends, to participate in the running of the company and to have a separate contractual agreement with Big Pump Irrigation Ltd for the delivery of 1 megalitre of water. Philip has such an agreement. Philip's agreement is a water entitlement. Philip's share is also a water entitlement because he must own the share in order to have a contractual arrangement with Big Pump Irrigation Ltd for the delivery of water.

124‑1110  Roll‑over consequences—capital gain or loss disregarded
  Disregard a *capital gain or *capital loss you make from each original entitlement that qualifies for a roll‑over.

124‑1115  Roll‑over consequences—partial roll‑over
 (1) You can obtain only a partial roll‑over in relation to an original entitlement if the *capital proceeds for that entitlement includes something (the ineligible proceeds) other than a new entitlement or new entitlements. There is no roll‑over for that part (the ineligible part) of the entitlement for which you received the ineligible proceeds.
Note: If the roll‑over is under subsection 124‑1105(2), some or all of the original entitlements may each have an ineligible part.
 (2) The *cost base of the ineligible part is that part of the cost base of the original entitlement as is reasonably attributable to the ineligible part.
 (3) The *reduced cost base of the ineligible part is worked out similarly.
 (4) In working out what is reasonably attributable to the ineligible part for the purposes of subsections (2) and (3), have regard to the *market value of the new entitlement relative to the market value of the ineligible proceeds.
 (5) If the roll‑over is under subsection 124‑1105(2), for the purposes of sections 124‑1120 and 124‑1130, for each original entitlement that has an ineligible part:
 (a) reduce the *cost base of that entitlement (just before you stopped owning it) by so much of that cost base as is attributable to that ineligible part; and
 (b) reduce the *reduced cost base of that entitlement similarly.

124‑1120  Roll‑over consequences—all original entitlements post‑CGT
 (1) In a situation covered by subsection 124‑1105(1), if you *acquired the original entitlement on or after 20