Private ruling: Commissioner’s discretion to extend a replacement asset period.
Date of advice: 18 January 2018
Published: May 2018
Ruling period: Year ending 30 June 2019 | Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to the specified date in 2018? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of time for a further 12 months for the replacement asset period. Further information on the relevant factors and the small business rollover can be found on our website ato.gov.au and entering Quick Code QC52291 into the search bar at the top right of the page.

Relevant facts and circumstances: You owned farming land with your spouse upon which you conducted business. You disposed of this land, resulting in a capital gains tax (CGT) event. Several months later your relative became very ill and subsequently passed away in 20XX. Since their passing, you and your spouse have been involved in and assisting with their estate and the care of your other relative. This had a major impact on the family business ventures. Your other relative has since been diagnosed with an illness and has required a great deal of care. You have been managing your other relative’s affairs on behalf of the family which has included: ● all financial transactions; and ● all interactions with real estate agents, lawyers, brokers, conveyancers and financial planners. You have been researching the purchase of replacement farming equipment but have not yet obtained a replacement asset.

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