Private ruling: Small business retirement exemption
Date of advice: 4 November 2020
Published: January 2021
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: XX XXXX 20XX

Ruling: Q1: Will the Commissioner allow further time as provided in paragraph 103-25(1)(b) of the Income Tax Assessment Act 1997 for you to choose to apply the small business retirement exemption to the capital gain? | A1: Yes, an extension will be granted. Generally, a choice available under the CGT provisions, once made cannot be changed. However, it is not the case that you have previously chosen a CGT concession in relation to the CGT event which you now wish to change; rather, no choice has been made as yet. Therefore, it is still open for the Commissioner to allow you further time to make a choice to utilise the small business retirement exemption. Having regard to your specific circumstances, the Commissioner considers it would be appropriate to exercise the discretion in this case. There would be no prejudice to the Commissioner or unsettling of people, and there is no mischief involved.

Relevant facts and circumstances: You made a capital gain from a CGT event that happened in the year ended 30 June 20XX. You did not make a choice in writing to utilise the small business retirement exemption when you lodged your income tax return for the year ended 30 June 20XX. You did not make a choice to utilise any other CGT concessions.

Relevant legislative provisions: Income Tax Assessment Act 1997 subparagraph 103-25(1)(b) | Income Tax Assessment Act 1997 subsection 152-305(1) | Income Tax Assessment Act 1997 subparagraph 152-305(1)(c)(i)