Private ruling: Commissioner's discretion - replacement asset rollover relief
Date of advice: 22 August 2023
Published: 3 October 2023
Ruling period: 1 July 2023 to 31 December 2023
Date scheme commenced: 1 July 2023

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 124-75(3)(b) of the Income Tax Assessment Act 1997 ('ITAA 1997') to extend the period to acquire a replacement asset to 31 December 2023? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner considers it appropriate to grant an extension of the replacement asset period by 6 months to 31 December 2023.

Relevant facts and circumstances: The Property was a residential rental property throughout the ownership period. On DD MM 20XX, you received a notification from the Government of State X, Department for Infrastructure and Transport regarding the acquisition of the Land for construction of a road project. On DD MM 20XX, the Commissioner of Highways of State X compulsorily acquired the Property. Settlement occurred on DD MM 20XX. There have been no legal disputes. There was no delay in receiving compensation. No suitable property has yet been acquired. Between DD MM 20XX and DD MM 20XX, you made more than X enquiries about purchasing a replacement property across both State X and State Y. Between DD MM 20XX and DD MM 20XX, you made one enquiry to a real estate agent. Personal circumstances including multiple deaths in your family since late between late 20XX and early to mid-20XX, have been a contributing factor to the delay in you acquiring a replacement property. You have now widened your search and will be looking across multiple states within Australia to acquire a replacement property.

Relevant legislative provisions: Subsection 124-75(3)(b) of the Income Tax Assessment Act 1997