Private ruling: CGT - small business concessions - replacement asset extension of time
Date of advice: 14 September 2020
Published: November 2020
Ruling period: Year ending 30 June 20XX to Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

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? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of the replacement asset period. Further information can be found by searching 'QC 52291' on ato.gov.au

Relevant facts and circumstances: You reported a capital gain event in your 20XX tax return electing to roll over a portion of the capital gain on disposal. The gain was realised from the disposal of an asset providing you two years to acquire a replacement asset or contribute the amount of capital gain rolled over to a complying superannuation fund. You identified a commercial property that may have been suitable as a replacement asset. You had discussions with your tax agent in relation to the price and if the property met the criteria for a replacement asset late January 20XX. You decided to contribute the rolled over capital gain into a complying superannuation fund. COVID 19 impacted the country in March 20XX, focusing your attention to your current business activity resulting in the identified funds being re-purposed to fund the business cash flow. Your partner, who is the primary caregiver for your children was diagnosed with a serious medical condition and has undergone treatment. You have funds identified that can accommodate the required deposit. You are under 55 years of age and intend to contribute an amount to a complying superannuation fund.

Relevant legislative provisions: Income Tax Assessment Act 1997 (ITAA 1997) section 104-190 | Income Tax Assessment Act 1997 Subdivision 152-E