Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 124.142

             (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.

Table of sections

124-510    Application of Subdivision 124-I of the Income Tax Assessment Act 1997