Private ruling: CGT - extension of time
Date of advice: 17 November 2025
Published: 5 January 2026
Ruling period: 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) for an extension of time to acquire a replacement asset until XX XXX 20XX? | A1: Yes.

Relevant facts and circumstances: The company conducts a farming business. The company entered into a contract to sell an asset on XX XXX 20XX which was owned by the company since 20XX. The company chose to utilise the small business CGT roll-over concession and the roll over period ended XX XXX 20XX. The region experienced weather events which impacted the company's ability to purchase a replacement asset. X property under consideration for purchase did not meet operational requirements of the company. The company made offers to purchase a property which fell through. Further, the director's family member became unwell which caused the director to focus on this matter rather than the purchase of the replacement asset. During this time the director continued to support their family member and the operation of the company. On the XX XX 20XX, the company entered into a contract to purchase a replacement asset.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-E | Income Tax Assessment Act 1997 section 152-410 | Income Tax Assessment Act 1997 section 104-190

Reasons for decision: Summary: Yes, the Commissioner will exercise the discretion under subsection 104-190(2) of the ITAA 1997 to allow an extension of time until XX April 20XX. | Detailed Reasoning - Detailed reasoning: Section 152-410 of the ITAA 1997 states that a rollover can be obtained under this section for a capital gain if the basic conditions in Subdivision 152-A of the ITAA 1997 are satisfied. A roll-over can be chosen even if the replacement asset has not been purchased or you have not yet incurred fourth element expenditure. The replacement asset period as outlined in subsection 104-190(1A) of the ITAA 1997 starts one year before the last CGT event and ends 2 years after that CGT event. The Commissioner has the discretion to extend the replacement asset period under subsection 104-190(2) of the ITAA 1997. | Detailed Reasoning - Factors the Commissioner considers whether to allow a longer period:: In determining whether to allow a longer period, the Commission will consider a range of factors such as: • whether there is evidence of an acceptable explanation for the period of extension requested and whether it would be fair and equitable in the circumstances to provide such an extension • whether there is any prejudice to the Commissioner if the additional time is allowed • whether there is any unsettling of people, other than the Commissioner, or of established practices • the need to ensure fairness to people in like positions and the wider public interest • whether there is any mischief involved • the consequences of the decision | Detailed Reasoning - Application to your circumstances: The replacement asset period as outlined in subsection 104-190(1A) of the ITAA 1997 starts one year before the last CGT event and ends 2 years after that CGT event. In these circumstances the replacement asset has not been purchased within the two years required. The facts provide that all attempts were made to acquire the replacement asset before the replacement asset period ended on XX January 20XX. The company did so by making offers and assessing properties suitable for the business operations and once a suitable property was found the company entered into a contract on XX XXX 20XX. There has been a delay in purchasing the replacement asset during the replacement asset 2-year period due to extenuating circumstances. Having considered the circumstances, the Commissioner will grant an extension of time under subsection 104-190(2) of the ITAA 1997 until XX XXX 20XX for the purchase of the replacement asset.