12 Jun 077 CGT roll-over on the ending of a statutory licenceIn a press release issued on 8 June 2007, the Minister for Revenue and Assistant Treasurer, Peter Dutton, announced that the Government will introduce legislation into the Parliament to amend the CGT provisions in the ITAA 1997 that apply to holders of statutory licences.
Mr Dutton said “The amendment will allow a partial CGT roll-over where a statutory licence ends and is replaced by one or more new licences and the licensee is offered non-licence capital proceeds such as money. Partial roll-over will be available to the extent that the original licence is replaced by a new statutory licence or licences. Where the statutory licence was acquired post-CGT, the CGT 50% discount may apply as may the CGT small business concessions to reduce the capital gain. Partial roll-over allows a pre-CGT licence holder to retain pre-CGT status for the new licence.”
The amendment will apply to CGT events that happen in the 2006-07 income year and later income years. Legislation giving effect to this announcement will be introduced as soon as practicable.
For a copy of the Minister's press release, No 2007/069, 8 June 2007, go here