Private ruling: CGT replacement asset rollover relief - extension of time
Date of advice: 9 June 2022
Published: August 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion to extend the replacement asset period pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) in respect of the small business roll-over under Subdivision 152-E of the ITAA 1997? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner considers it appropriate to grant an extension of the replacement asset period to 30 June 20XX.

Relevant facts and circumstances: You had a capital gains tax (CGT) event during the 20XX financial year. The CGT event resulted in a capital gain which was rolled over under the small business roll-over. You intended to purchase a family member's interest in an asset as a replacement asset, but this recently has fell through. You have actively been looking for another replacement asset since. However, due to various circumstances outside your control such as the COVID-19 restrictions and limited suitable replacement assets within your district, it is taking longer than the two-year period to secure a replacement asset. Assumption The entity meets the requirements for the CGT small business concessions as outlined in the ITAA 1997 Subdivision 152-A.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 104-190(2)