Document ID: chunk:federal_register_of_legislation:C2010A00136:clause:2_6:p2
Version: federal_register_of_legislation:C2010A00136
Segment Type: clause
Provision Reference: sch 2 cl 6 (pt 2/6)
Character Range: 12626–15388

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 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 choose to obtain the roll‑over.
Note: Section 103‑25 tells you when the choice must be made.

No roll‑over if Subdivision 124‑C applies
 (3) However, there is no roll‑over in relation to a *water entitlement 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