Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 112.110

    If you acquired the original asset on or after 20   September 1985:

  (a)   the first element of the replacement asset's cost base is replaced by the original asset's cost base at the time you acquired the replacement asset; and

  (b)   the first element of the replacement asset's reduced cost base is replaced by the original asset's reduced cost base at the time you acquired the replacement asset.

Note 1:   Some replacement - asset roll - overs involve other rules that affect the cost base or reduced cost base of the replacement asset.

Note 2:   If you acquired the original asset before 20   September 1985, you are taken to have acquired the replacement asset before that day: see Subdivision   124 - A.

Note 3:   The reduced cost base may be further modified if the replacement asset roll - over happens after a demerger: see section   125 - 170.