Private ruling: CGT - compulsory acquisition
Date of advice: 30 May 2025
Published: 4 August 2025
Ruling period: Income year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the proposed acquisition of property satisfy the 'same' or 'similar' purpose test for the purposes of subsection 124-75(4) of the Income Tax Assessment Act 1997 ? | A1: Yes. The Commissioner accepts that the proposed acquisition will satisfy the 'same' or 'similar' purpose test for the purposes of subsection 124-75(4).

Relevant facts and circumstances: Entity A owned the properties that were leased to tenants to derive rental income. A 'Taking of Land' notice was published in the Government Gazette and covered the properties owned by Entity A. Entity A is considering acquiring a replacement property to derive rental income from leasing it.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 124-75(4)