Private ruling: CGT - small business concessions
Date of advice: 28 April 2023
Published: 13 June 2023
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise their discretion under subsection 103-25(1) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time to 30 June 20XX for you to make a choice to apply the small business retirement exemption? | A1: Yes. After taking into consideration your relevant circumstances, including the fact that no mischief is involved, there is no unsettling of other people or established practices and the requested extension is relatively short, the Commissioner will allow an extension of time to 30 June 20XX.

Relevant facts and circumstances: You acquired farmland property (the Property) more than 5 years ago. The Property was used in carrying on a business since its acquisition until 20XX. You sold the Property in the 20XX-XX financial year with settlement occurring several months later in the 20XX-XX financial year. You satisfy the basic conditions for Small Business capital gains tax (CGT) concessions under section 152-10 of the ITAA 1997. You are entitled to the small business retirement exemption under Subdivision 152-D of the ITAA 1997. You did not declare the sale of Property on your tax return for the 20XX-XX financial year, as your understanding was that it was to be reported in the year of settlement. You intend to amend your 20XX-XX Income Tax Return to include the sale of Property and apply the small business retirement exemption.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 103-25 | Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-305 | Income Tax Assessment Act 1997 Subdivision 152-D