Private ruling: CGT small business concessions - extension of time for replacement asset
Date of advice: 13 October 2022
Published: December 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion to extend the replacement asset period until Day Month 20XX, pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997), in respect of the small business roll-over in Subdivision 152-E of the ITAA 1997? | A1: Yes. Having regard to the circumstances including the COVID-19 travel restrictions and other personal circumstances, the Commissioner considers the extension would be fair and equitable. Further information on the small business rollover can be found on by searching 'QC 52291' on ato.gov.au.

Relevant facts and circumstances: The Trust is a small business entity. The Trust owned a vessel which was used in the business. This vessel sunk on Day Month 20XX. An insurance payout was received on Day Month 20XX. The Trust chose to apply the small business roll-over and has been actively looking for a replacement asset. The individual responsible for running the business resides in State BB and was prevented from going to State AA to meet with vessel dealers due to COVID-19 lockdowns and interstate travel restrictions. During this same period, the individual was going through difficult personal circumstances which continue to cause delay in the Trust acquiring a replacement asset.

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