Private ruling: Small business Capital gains tax replacement asset rollover relief extension.
Date of advice: 5 August 2025
Published: 7 October 2025
Ruling period: Year ended 30 June 2025 | Year ending 30 June 2026
Date scheme commenced: 1 July 2024

Ruling: Q1: Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 to extend the replacement asset period? | A1: Yes. Having regard to the relevant facts and circumstances, including the difficulties associated with planning and approvals, the Commissioner will exercise the discretion and extend the replacement asset period.

Relevant facts and circumstances: You entered into a contract to sell your business. You made the choice to use the small business rollover relief. After the sale you entered into a contract for the purchase of a replacement property. Part of the property will be utilised for a new business. You engaged designers who offered the full service of drawings, building designs, engineering, enviro and certifier. You have experienced delays with approvals and finalisation of the plans.

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