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Myer (1987): lump sum amount was OI as it replaces the periodic payment of interest
McCauley (1944): payment was for recover of timber from the land & the amount of
payment dependant on how much timber recovered from the land
=> Ordinary royalty as amount of payment varies by extent of right exercised
Is it ordinary income?
Is it capital gain under statutory income s102-5(1)?
Is there a CGT event?
Is there a CGT asset?
Is it pre-capital gain (acquired before 20/9/1985)?
Is it collectible or personal use asset? (check cost, gain/loss may be disregarded)
Does an exemption apply?
Is there a roll-over relief?