04 Oct 07 CGT concession for cash payments and statutory licencesOn 8 June 2007, the Minister for Revenue and Assistant Treasurer, Mr Peter Dutton, announced technical amendments to the capital gains tax provisions of the ITAA 1997: see 2007 TAXVINE No 23 (6) (15 June 2007). These have now been enacted in Schedule 7 of Tax Law Amendment (2007 Measures No5) Act 2007.
The ATO has advised that if a taxpayer has already lodged their 2006-07 income tax return, they will need to review their income tax return details to see if their calculation of capital gains is different under the new law. If there is a difference, they will have to request an amendment to their assessment. If they have not lodged their income tax return for 2006-07, they need to apply the new law. This means that they calculate the capital gain that relates to the cash payment and include that capital gain in their income tax return.
For a copy of the ATO advice, go here