Private ruling: Extension of replacement asset period
Date of advice: 8 July 2025
Published: 1 September 2025
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 2 May 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the replacement asset period to allow you to acquire a replacement asset? | A1: Yes, the Commissioner will exercise his discretion in accordance with subsection 104-190(2) of the ITAA 1997 and extend the replacement asset period. You disposed of CGT assets and CGT events happened in the 20XX income tax year. You have chosen to apply the Small Business rollover under Subdivision 152-E of the ITAA 1997 to the capital gain from the disposal of the CGT assets. Having considered your circumstances and the relevant factors, the Commissioner will apply his discretion and extend your replacement asset period to 30 June 20XX.

Relevant facts and circumstances: You disposed of CGT assets during the 20XX income tax year. You lodged and declared in your 20XX income tax return that you choose to apply the Small Business roll-over relief under Subdivision 152-E of the ITAA 1997 to the disposal of your CGT assets. Your replacement asset period commences one year prior to the date the last CGT event occurred in the 20XX income tax year and ending two years after the last CGT event. You attribute the time taken to receive a response to a private ruling application you submitted in the year after the CGT event occurred as having impacted the time available to identify, investigate and negotiate a suitable replacement asset. You provided a list of your attempts to acquire a replacement asset during the replacement asset period. Due to the characteristics of your business activity, you believe the suitable asset you are considering to acquire is available at specific times of the year. To date you have not acquired a replacement asset for reasons that have been outside your control.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-190 | Income Tax Assessment Act 1997 subsection 104-190(1A) | Income Tax Assessment Act 1997 subsection 104-190(1) | Income Tax Assessment Act 1997 subsection 104-190(2) | Income Tax Assessment Act 1997 Subdivision 152-E | Income Tax Assessment Act 1997 section 152-410