Income tax: capital gains: is rollover relief available if a taxpayer receives cash and an asset as compensation for the compulsory acquisition of an asset?

Former sections 160ZZK and 160ZZL of the Income Tax Assessment Act 1936 (ITAA 1936) set out when a taxpayer, who received money or a replacement asset as a result of the involuntary disposal of an asset, could choose rollover. Taxation Determination TD 94/78 clarified that a taxpayer could choose rollover if they received both money and a replacement asset for the involuntary disposal of an asset.

Sections 160ZZK and 160ZZL of the ITAA 1936 were rewritten as Subdivision 124-B of the Income Tax Assessment Act 1997 (ITAA 1997). Section 124-95 of the ITAA 1997 contains rules that now apply where a taxpayer receives a combination of cash and a replacement asset for the involuntary disposal.

As the rewritten provisions express the law clearly, the Determination is no longer necessary and is therefore withdrawn.