Income Tax (Transitional Provisions) Act 1997

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.

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.

The cost base and reduced cost base of any new licence that is not covered under subsection 124‑140(3) is nil.

Subsections (4) and (5) apply if:

there was more than one original licence; and

some of the original licences were acquired before 20 September 1985; and

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).

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.

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.