Private ruling: CGT - small business concessions
Date of advice: 22 May 2025
Published: 21 July 2025
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to 30 June 20XX? | A1: Yes, having considered your circumstances and the relevant factors, the Commissioner will use the available discretion to grant the Trust further time to acquire a replacement asset. The director has spent considerable amount of time being treated for a significant medical condition while trying to deal with the legal issues surrounding starting another business. The Trust has until 30 June 20XX to purchase a replacement CGT asset.

Relevant facts and circumstances: The Trust made a capital gain in the year ending June 20XX. The Trust elected to apply the capital gains tax (CGT) small business roll-over concession to part of the capital gain. The Trust sold the business, including the business name, goodwill, licenses, leases, equipment and existing employees. The sole director has spent a considerable amount of time being treated for significant medical conditions. The Trust was granted a 1 year CGT extension previously and has been in the process of trying to purchase a business in this time frame. The extension date was until November 20XX. Over the last year the director has been in active discussions with a supplier of laser machines, which they intended to purchase to start their new business. The Trust is in the final stages of completing the setup of the new business and wishes to be granted an additional extension. The director has not signed a contract for a machine but has received a quote on agreed price to purchase them but has not made a deposit yet. The director has been in consultation with a lawyer to ensure the terms of the original sale agreement have not been breached. Having to deal with the stress of their ongoing health issues and legal issues has led to further health issues but the director has been treated and making a recovery.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 104-190(2) | Income Tax Assessment Act 1997 Subdivision 152-E