Private ruling: Commissioner’s discretion
Date of advice: 3 August 2018
Published: September 2018
Ruling period: Year ended 30 June 2017 | Year ended 30 June 2018 | Year ended 30 June 2019
Date scheme commenced: 1 July 2016

Ruling: Q1: Will the Commissioner exercise his discretion under section 124-75 of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to XX/XX/XXXX for incurring expenditure on replacement buildings on your farmland? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under section 124-75 of the ITAA 1997 and allow an extension of time to XX/XX/XXXX . Further information on the involuntary disposal of a CGT asset can be found on our website ato.gov.au and entering Quick Code QC 17204 into the search bar at the top right of the page.

Relevant facts and circumstances: You run a farming enterprise. You were severely impacted by a fire which impacted approximately the majority of your farm land. You received insurance proceeds. You elected to use the rollover in Subdivision 124-B of the ITAA 1997 in relation to the buildings. You have focused on planning and ensuring all replacement buildings and infrastructure are done so in an appropriate and effective manner. The scale of the assets/buildings required to be replaced requires substantial planning. You have engaged consultancy services to ensure an appropriate rebuild and are now working towards implementing the plans outlaid. You have also experienced delays as a consequence of a drought.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 124-75