Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:7_4:p2
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 7 cl 4 (pt 2/2)
Character Range: 157219–159080

in accordance with the regulations.

 (2) The regulations may specify one or more ways of working out the value of a licence (other than an aquifer access licence mentioned in paragraph 124‑40(3)(a)) for the purposes of this section.

 (3) For an original licence that has an ineligible part, the reduced cost base of the ineligible part is the reduced cost base of the original licence multiplied by the amount worked under the formula set out in subsection (1).

124‑142  ASGE licence etc.—cost base of aquifer access licence etc.

 (1) The first element of the cost base and reduced cost base of the new licence that is covered under subsection 124‑140(3) is the total of the cost bases of the original licences.

Note: For the purposes of this section, the cost base of each original licence that has an ineligible part is reduced in accordance with subsection 124‑150(4) of the Income Tax Assessment Act 1997.

 (2) The cost base and reduced cost base of any new licence that is not covered under subsection 124‑140(3) is nil.

 (3) Subsections (4) and (5) apply if:
 (a) there was more than one original licence; and
 (b) some of the original licences were acquired before 20 September 1985; and
 (c) subsection 124‑165(2) of the Income Tax Assessment Act 1997 applies in relation to the new licence that is covered under subsection 124‑140(3) (splitting that licence into 2 separate CGT assets).

 (4) For the purposes of subsection (2), treat the asset that is taken under paragraph 124‑165(2)(a) of that Act to have been acquired on or after 20 September 1985 as a new licence that is covered under subsection 124‑140(3) of this Act.

 (5) Work out the first element of the cost base and reduced cost base of that asset in accordance with subsection 124‑165(3) of that Act.

Part 2—Consequential and other amendments

Income Tax Assessment Act 1997