Private ruling: CGT - replacement asset rollover
Date of advice: 18 May 2026
Published: 27 July 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 to extend the replacement asset period to acquire a replacement asset? | A1: Yes . Having considered your circumstances, including the length of the extension and efforts made to purchase a replacement asset, the Commissioner considers it appropriate to grant an extension of time.

Relevant facts and circumstances: You sold a business in XX 20XX and made a capital gain. You chose to roll over the capital gain and intended to purchase a new business. In XX 20XX you purchased shares in another business as a replacement asset. On X XX 20XX the shares stopped being an active asset as the business being operated by the company was sold. CGT event J2 occurred. You didn't realise the CGT event was triggered on the contract date and thought the relevant date for CGT purposes was the settlement date. While preparing your 20YY income tax return you realised the CGT event occurred in the 20YY income year. You chose to roll over the capital gain from the J2 event in your 20YY-YY income tax return. You have been actively looking to purchase another business and you purchased a replacement asset on XX XX 20YY.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 140-190(2)