Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 2/3)
Character Range: 361173–363796

original asset is disregarded.

 (3) If you *acquired the original asset on or after 20 September 1985:

 (a) the first element of the other asset's *cost base is the original asset's cost base at the time of the event; and

 (b) the first element of the other asset's *reduced cost base is the original asset's reduced cost base at the time of the event.

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

Example: Steven bought land in 1999 for $100,000. In 2001 the government compulsorily acquires the land and gives him new land in return.

 A capital gain he makes from the original land is disregarded. Suppose the original land's cost base when it is acquired is $120,000. The first element of the new land's cost base becomes $120,000.

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

124‑95  You receive both money and an asset

 (1) If you receive both money and another *CGT asset for the event happening and choose to obtain a roll‑over, the requirements and consequences are different for each part of the compensation attributable to the original asset (having regard to the amount of money and the market value of the other asset).

The other asset as a part of compensation

 (2) The market value of the other asset (when you *acquire it) must be more than that part of the *cost base of the original asset that is attributable to the new asset.

Note: This requirement is different to that in subsection 124‑80(3). It requires a proportional attribution of the cost base of the original asset.

 (3) If you *acquired the original asset on or after 20 September 1985:

 (a) the first element of the other asset's *cost base is that part of the original asset's cost base at the time of the event that is attributable to the new asset; and

 (b) the first element of the other asset's *reduced cost base is worked out similarly.

Note: These consequences are different to those in subsection 124‑90(3). They require a proportional attribution of the cost base of the original asset.

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

Money as a part of compensation

 (5) If you make a *capital gain from the event, this table sets out in what situations that part of the gain on the original asset that is attributable to the amount of money you received is reduced, not reduced or disregarded.

  It also sets out in what situations the expenditure you incurred to *acquire another *CGT asset