Private ruling: CGT - small business concessions - extension of time rollover relief
Date of advice: 29 May 2021
Published: August 2021
Ruling period: Year ended 30 June 2019 | Year ended 30 June 2020 | Year ended 30 June 2021 | Year ended 30 June 2022
Date scheme commenced: 2018

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension to the replacement asset period to XX November 20XX? Answer Yes. The small business rollover allows you to defer the capital gain made from a Capital Gains Tax (CGT) event if you acquire one or more replacement assets and satisfy certain conditions. The conditions which must be met to obtain relief are set out in Subdivision 152-A of the ITAA 1997. For you to obtain a rollover, subsection 104-185(1) of the ITAA 1997 requires you to acquire a replacement asset within a period starting one year before, and ending two years after the date of disposal of the original asset. Subsection 104-190(2) of the ITAA 1997 states that the Commissioner may exercise his discretion to extend those time limits. After, reviewing the facts of your situation, the Commissioner will apply the discretion under subsection 104-190(2) of the ITAA 1997 and allow the extension of time.

Relevant facts and circumstances: You disposed of a CGT asset on XX March 20XX. You applied the CGT small business rollover on the gain made from the disposal. The purchaser has not made final payment for the purchase. You have been in a lengthy legal battle with the purchaser and it seems likely that the purchaser may not pay the full amount outstanding. You have not been provided with a date the outstanding amount will be paid by the purchaser. As you have not received all proceeds from the disposal, you have not been in a position to acquire a replacement asset within the replacement asset period.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-A | Income Tax Assessment Act 1997 subsection 104-185(1) | Income Tax Assessment Act 1997 subsection 104-190(2)


This ruling applies for the following period s :