Private ruling: CGT - small business concessions
Date of advice: 13 November 2025
Published: 5 January 2026
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 2020

Ruling: Q1: Will the Commissioner exercise the discretion under paragraph 103-25(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time until DD/MM/YYYY for you to choose to apply the small business roll-over in section 15-410 of the ITAA 1997 to the capital gains that arose in the 20XX financial year? | A1: Yes. The general rule is that a choice available under the CGT provisions once made, cannot be changed. Such a choice must usually be made by the time the income tax return is lodged or within such further time as the Commissioner allows. With consideration of the relevant circumstances, the Commissioner will allow an extension of time to make a choice until DD MM YYYY under paragraph 103-25(1)(b) of the ITAA 1997.

Relevant facts and circumstances: A and B are beneficiaries of the trust. The trust owned shares. During FY20XX, the trust sold those shares, resulting in capital gains which were reported in the trust's 20XX income tax return. The general 50% capital gains discount was applied automatically to reduce the capital gains by 50%. The active asset reduction was applied automatically to reduce the gain by a further 50%. No additional small business capital gains tax exemptions or rollovers were applied. Net gains were distributed and assessed in A and B's 20XX income tax returns. No election was made in the income tax return lodged for the trust to apply the small business asset rollover concession. The 20XX income tax returns were prepared and lodged by the trust's previous tax agent. This agent did not make A and B aware of the availability of the small business asset rollover concession. They were not able to consider this concession or make a choice at the time. Following a review of the CGT transactions and assessment of their eligibility by a new tax agent, the trust's representatives now wish to apply the small business asset roll-over to the capital gains.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 103-25 | Income Tax Assessment Act 1997 section 152-205