Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p38
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 38/59)
Character Range: 2626830–2629660

entitlements before 20 September 1985 as is reasonable, having regard to:
 (a) the number and *market value of your original entitlements; and
 (b) the number and market value of your new entitlements.
 (3) The first element of the *cost base of each of your new entitlements that are not taken by subsection (2) to have been *acquired before 20 September 1985 (your post‑CGT entitlements) is such amount as is reasonable having regard to:
 (a) the total of the cost bases of the original entitlements you acquired on or after 20 September 1985; and
 (b) the number and *market value of your post‑CGT entitlements; and
 (c) any amount you paid to get the new entitlements (which can include giving property: see section 103‑5).
 (4) The reduced cost base of each of your post‑CGT entitlements is worked out similarly.

Reduction case

124‑1135  Reduction in water entitlements roll‑over
  There is a roll‑over if:
 (a) you own more than one *water entitlement; and
 (b) under an *arrangement:
 (i) your ownership of one or more of the water entitlements (each of which is an original entitlement) ends, resulting in a *CGT event happening; and
 (ii) you do not receive anything for the original entitlement or entitlements; and
 (iii) you retain one or more of your original entitlements (the retained entitlements); and
 (c) the total of the *market values of all of the retained entitlements immediately after the CGT event happens is substantially the same as the total of the market values of all of the original entitlements immediately before the CGT event happened.

124‑1140  Roll‑over consequences—capital gain or loss disregarded
  A *capital gain or *capital loss you make from your ownership of the original entitlements ending is disregarded.

124‑1145  Roll‑over consequences—all original entitlements post‑CGT
 (1) This section applies if you *acquired the original entitlement (or all of the original entitlements) on or after 20 September 1985.
 (2) The first element of the *cost base of the retained entitlement (or of each of the retained entitlements) is such amount as is reasonable having regard to:
 (a) the total of the cost bases of all the original entitlements; and
 (b) the number and *market value of the original entitlements; and
 (c) the number and market value of the retained entitlements.
 (3) The first element of the *reduced cost base of the retained entitlements is worked out similarly.
 (4) For the purposes of paragraph (2)(c), the *market value of the retained entitlements is their market value just after the *CGT event referred to in section 124‑1135 happens.

124‑1150  Roll‑over consequences—some original entitlements pre‑CGT, others post‑CGT
 (1) This section applies if:
 (a) you *acquired one or more of the original entitlements before 20 September 1985; and
 (b) you acquired