Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 108.55

  (1)   A building or structure on land that you * acquired on or after 20   September 1985 is taken to be a separate * CGT asset from the land if one of these balancing adjustment provisions applies to the building or structure (whether or not there is a balancing adjustment):

  (a)   Subdivision   40 - D; or

  (b)   section   355 - 315 or 355 - 525 (about R&D).

Example:   You construct a timber mill building on land you own. The building is subject to a balancing adjustment on its disposal, loss or destruction. It is taken to be a separate CGT asset from the land.

  (2)   A building or structure that is constructed on land that you * acquired before 20   September 1985 is taken to be a separate * CGT asset from the land if:

  (a)   you entered into a contract for the construction on or after that day; or

  (b)   if there is no contract--the construction started on or after that day.

Example:   You bought a block of land with a building on it on 10   August 1984. On 1   December 1999 you construct another building on the land. The other building is taken to be a separate CGT asset from the land.