Private ruling: Capital gains tax - small business concessions - 15-year exemption - extension of time
Date of advice: 26 June 2025
Published: 1 September 2025
Ruling period: Year ending 30 June 2026 | Year ending 30 June 2027 | Year ending 30 June 2028 | Year ending 30 June 2029 | Year ending 30 June 2030 | Year ending 30 June 2031 | Year ending 30 June 2032 | Year ending 30 June 2033
Date scheme commenced: 1 July 2025

Ruling: Q1: Will the Commissioner extend the time limit in paragraph 152-125(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to May 20XX in accordance with subsection 152-125(4) of the ITAA 1997, for payment of the exempt amount to the capital gains tax (CGT) concession holder? | A1: Yes. Having considered the circumstances, including the sale of the business and the proceeds being received by instalments, the Commissioner will allow an extension of time beyond two years to May 20XX as per subsection 152-125(4) of the ITAA 1997 to apply the CGT small business concessions.

Relevant facts and circumstances: The Company sold the goodwill of a business to the purchaser in March 20XX. The purchaser and the Company entered into a vendor finance arrangement as per the terms of the sale agreement. The finance arrangement consists of xx monthly payments commencing June 20XX with the final payment being made in May 20XX. Due to the time frame for the vendor finance agreement the Company will not receive all funds from the sale of the asset before the end of the current two-year time frame.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 152-125(1)(b) | Income Tax Assessment Act 1997 subsection 152-125(4)