Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p35
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 35/59)
Character Range: 2619175–2622032

entitlements post‑CGT
124‑1150 Roll‑over consequences—some original entitlements pre‑CGT, others post‑CGT

Variation to CGT asset case
124‑1155 Roll‑over for variation to CGT asset
124‑1160 Roll‑over consequences
124‑1165 Roll‑over consequences—partial roll‑over

Replacement case

124‑1105  Replacement water entitlements roll‑over

Automatic roll‑over for single water entitlements
 (1) There is a roll‑over if:
 (a) your ownership of a *water entitlement (the original entitlement) ends, resulting in a *CGT event happening; and
 (b) as a result of your ownership of the original entitlement ending, you *acquire one or more water entitlements (each of which is a new entitlement); and
 (c) if you are a foreign resident just before your ownership of the original entitlement ends, or you are the trustee of a trust that is a *foreign trust for CGT purposes for the income year in which your ownership of the original entitlement ends:
 (i) the original entitlement was *taxable Australian property just before you stopped owning it; and
 (ii) if there is only one new entitlement—the new entitlement is taxable Australian property just after you acquire it; and
 (iii) if there is more than one new entitlement—each new entitlement is taxable Australian property just after you acquire it; and
 (d) you have not chosen a roll‑over in relation to the original entitlement under subsection (2).

Elective roll‑over for bundled water entitlements
 (2) There is a roll‑over if:
 (a) your ownership of more than one *water entitlement (each of which is an original entitlement) ends, resulting in a *CGT event happening; and
 (b) as a result of your ownership of the original entitlements ending, you *acquire one or more water entitlements (each of which is a new entitlement); and
 (c) if you are a foreign resident just before your ownership of the original entitlements ends, or you are the trustee of a trust that is a *foreign trust for CGT purposes for the income year in which your ownership of the original entitlements ends:
 (i) each original entitlement was *taxable Australian property just before you stopped owning it; and
 (ii) if there is only one new entitlement—the new entitlement is taxable Australian property just after you acquire it; and
 (iii) if there is more than one new entitlement—each new entitlement is taxable Australian property just after you acquire it; and
 (d) you choose to obtain the roll‑over.
Note: Section 103‑25 tells you when the choice must be made.

No roll‑over if Subdivision 124‑C applies
 (3) However, there is no roll‑over in relation to a *water entitlement under this section if there is a roll‑over in relation to the water entitlement under Subdivision 124‑C (statutory licences).

Meaning of water entitlement
 (4) A water entitlement is a legal or equitable right that an entity owns that relates to