Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p7
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 7/10)
Character Range: 347981–350658

out what the consequences are for being able to obtain a roll‑over: see Subdivision 124‑A.

 (3) Third, find out if there are any special rules relevant to your situation: see the Subdivision under which you can get the roll‑over.

Subdivision 124‑A—General rules

 Table of sections

124‑10 Your ownership of one CGT asset ends
124‑15 Your ownership of more than one CGT asset ends

124‑10  Your ownership of one CGT asset ends

 (1) There are these consequences (in most cases) if you can obtain a roll‑over when your ownership of a *CGT asset (the original asset) ends and you *acquire one or more CGT assets (the new assets) in a situation covered by this Division.

Example: Your commercial fishing licence expires and you get a new one.

 (2) A *capital gain or a *capital loss you make from the original asset is disregarded.

 (3) If you *acquired the original asset on or after 20 September 1985, the first element of each new asset's *cost base is:

  The first element of each new asset's *reduced cost base is worked out similarly.

Example: To continue the example, suppose the cost base of the fishing licence that expires is $5,000. This becomes the first element of the new one's cost base.

Note 1: In some cases the amount you paid to acquire the new asset also forms part of the first element: see Subdivisions 124‑C (about statutory licences) and 124‑D (about strata title conversion).

Note 2: There are modifications to the consequences in Subdivision 124‑B (about compulsory acquisition, loss or destruction), Subdivision 124‑J (about Crown leases) and Subdivision 124‑L (about prospecting and mining).

Note 3: No other elements of the cost base of the new asset are affected by the roll‑over.

Note 4: There are special indexation rules for roll‑overs: see Division 114.

 (4) If you *acquired the original asset before 20 September 1985, you are taken to have acquired each new asset before that day.

Note: A capital gain or loss you make from a CGT asset you acquired before 20 September 1985 is generally disregarded: see Division 104. This exemption is removed in some situations: see Division 149.

124‑15  Your ownership of more than one CGT asset ends

 (1) There are these consequences (in most cases) if you can obtain a roll‑over when your ownership of more than one *CGT asset (the original assets) ends and you acquire one or more CGT assets (the new assets) in a situation covered by this Division.

Example: You own 100 shares in a company. The company cancels these shares and issues you with 10 shares in return.

 (2) A *capital gain or a *capital loss you make from each original asset is disregarded.

 (3) If