02 Mar 099 CGT relief for transformation of water rightsIn a media release issued on 27 February 2009, the Assistant Treasurer, Chris Bowen, announced that the Government will provide CGT roll-over relief for irrigators who transform their entitlement to water under an irrigation right held against an irrigation infrastructure operator into an individual water entitlement.
This roll-over will facilitate transformation arrangements allowed under the new water market rules that will be made under the Water Act 2007 by deferring the CGT consequences of the transformation for irrigators until they subsequently deal with their individually held water entitlement. This change will apply to CGT events that happen on and after 1 July 2008.
Initial consultation will be undertaken on the design of these amendments - a discussion paper providing further information about this proposal has also been released. An exposure draft of the legislation will be released for consultation after the initial consultation.
For a copy of the Minister's media release, No 2009/011, 27 February 2009, go here.
For a copy of the discussion paper, go here.