Document ID: chunk:federal_register_of_legislation:C2011A00061:clause:3_6:p1
Version: federal_register_of_legislation:C2011A00061
Segment Type: clause
Provision Reference: sch 3 cl 6 (pt 1/4)
Character Range: 17568–20147

6  At the end of Subdivision 118‑B
Add:

Compulsory acquisitions of adjacent land only

118‑240  What the following provisions are about

      You can ignore a capital gain or capital loss you make from a compulsory acquisition (or similar arrangement) that happens only to land that is adjacent to:

                (a) a dwelling that is your main residence; or
                (b) a dwelling that passed to you as a beneficiary, or trustee, of a deceased estate;

      to the extent that the land was used primarily for private or domestic purposes in association with the dwelling.
      There is a limit on the maximum area of land covered by the exemption.
Note: The exemption may not apply in full if the dwelling:
(a) was not always a main residence; or
(b) was used for the purpose of producing assessable income.

118‑245  CGT events happening only to adjacent land

Total adjacent land is 2 hectares or less
 (1) A *capital gain or *capital loss you make from a *CGT event that happens in relation to land (the exempt land), or your *ownership interest in it, is disregarded if:
 (a) you are an individual; and
 (b) the exempt land is all or part of a *dwelling's *adjacent land at the time of the CGT event; and
 (c) the CGT event does not happen in relation to the dwelling and does not happen in relation to your ownership interest in the dwelling; and
 (d) one of the following subparagraphs applies:
 (i) the dwelling was your main residence throughout all or part of your *ownership period of the dwelling;
 (ii) your ownership interest in the dwelling *passed to you as a beneficiary in a deceased estate;
 (iii) you own your ownership interest in the dwelling as the trustee of a deceased estate; and
 (e) section 118‑250 (about compulsory acquisitions of adjacent land) applies to the CGT event and the exempt land; and
 (f) the sum of the following is 2 hectares or less:
 (i) the area of all of the dwelling's adjacent land at the time of the CGT event;
 (ii) the area of the land immediately under the dwelling;
 (iii) if this section applied to you for an earlier CGT event that involved reducing the area of the dwelling's adjacent land at the time of that earlier CGT event—that reduction in area.
Note: You may get only a partial exemption for the gain or loss (see section 118‑260).

Total adjacent land is more than 2 hectares
 (2) If:
 (a) apart from paragraph (1)(f), subsection (1) would apply to the gain or loss; and
 (b) you choose this subsection to apply to the gain or loss;
disregard so much of the gain or loss that relates to land (the