Private ruling: Replacement asset roll-over - original asset compulsorily acquired
Date of advice: 27 November 2019
Published: February 2020
Ruling period: Year ended 30 June 2018 | Year ended 30 June 2019 | Year ended 30 June 2020 | Year ended 30 June 2021
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise the discretion available under subsection 124-75(3) of the Income Tax Assessment Act 1997 to allow you further time until 30 June 2021 to incur expenditure in acquiring a replacement CGT asset following the compulsory acquisition of your original CGT asset? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner will allow you further time to incur expenditure in acquiring a replacement CGT asset. Further information can be found by searching 'QC 17204' on ato.gov.au

Relevant facts and circumstances: A CGT asset of yours was compulsorily acquired by an Australian government agency. You intended to elect CGT roll-over relief with respect to the compulsory acquisition by purchasing one or more replacement CGT assets of sufficient value to cover the proceeds of the compulsory acquired CGT asset. A replacement CGT asset was identified with an agreement to purchase being entered into. It was expected that this CGT asset would be purchased forthwith and that roll-over relief would be applied with respect to the compulsory acquisition and the subsequent purchase of replacement assets. You incurred delays in acquiring a replacement CGT asset during which you experienced also health issues. You have overcome your health issues and are now seriously looking for a replacement CGT asset.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 124-70 | Income Tax Assessment Act 1997 section 124-75