Private ruling: Extension of the replacement asset period to apply the small business roll-over concession for a CGT event
Date of advice: 24 June 2021
Published: September 2021
Ruling period: Year ended DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise his discretion under paragraph 124-75(3)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time, until DD MM YYYY for you to acquire replacement assets? | A1: Yes. The Commissioner will exercise his discretion under paragraph 124-75(3)(b) of the ITAA 1997 to allow an extension of time until 30 June 2022 to replace the compulsorily acquired assets. Further information on the CGT treatment of Involuntary Disposal of CGT assets can be found on our website: ato.gov.au by searching quick code QC17204.

Relevant facts and circumstances: Prior to 20 September 1985, you acquired a commercial property (the property). The property was compulsory acquired by a third party and you received compensation. Since the date of acquisition, you have been in negotiations with the third party requesting additional compensation and have successful received two additional compensation payments. You have acquired one replacement asset using a portion of the compensation amount. You intend to acquire another replacement asset to use the remaining compensation amount. On two separate occasions, you have applied for an extension of time for the replacement asset period, which have been granted by the Commissioner. Since DD MM YYYY, you have identified over XX properties and for various reasons, chosen not to proceed with their acquisition.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 104-10 | Income Tax Assessment Act 1997 Subdivision 124-B | Income Tax Assessment Act 1997 Section 124-70 | Income Tax Assessment Act 1997 Section 124-75


This ruling applies for the following period periods :