Private ruling: CGT - small business concessions
Date of advice: 11 August 2025
Published: 27 October 2025
Ruling period: year ended 30 June 2023 | year ended 30 June 2024 | year ended 30 June 2025 | year ended 30 June 2026 | year ended 30 June 2027
Date scheme commenced: 1 July 2022

Ruling: Q1: Will the Commissioner exercise discretion under section 104-190 of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period by two years for the small business CGT rollover to 30 June 20XX? | A1: 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 his discretion under subsection 104-190(2) of the ITAA 1997 and allow the extension of time.

Relevant facts and circumstances: During the 2023 income year, your property was sold and yielded a capital gain of a specified amount. Your property was an active asset used for several income-producing activities. The sale was due to the following reasons: • Flooding caused by rain, disrupting income-producing activities. • Insufficient water causing inadequate supply for income-producing activities. You intend to acquire a property to continue these activities and you have retained assets for income-producing activities which are currently in storage. You were unable to find a suitable property within two years due to: • All-weather access for income-producing activities. • Water supply for income-producing activities. • Land suitable for income-producing activities. • Zoning suitable to allow specific income-producing activities. You have viewed more than 20 rural properties and have provided a brief description of a few that were not suitable.

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)