Private ruling: CGT - small business concessions
Date of advice: 14 March 2023
Published: 1 May 2023
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to allow the Trustees of the Estate to apply the small business capital gains tax concessions to the capital gain that will result from the sale Property 1 and Property 2? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time until Property 1 and Property 2 were sold.

Relevant facts and circumstances: In 19XX, the Deceased purchased 50% of farmland consisting of Property 1 and Property 2. On X MM 20XX, the Deceased passed away at the age of XX years old. From acquisition of Property 1 and Property 2 up until the date of death, Property 1 and Property 2 were used by the Deceased in a primary production business. This business was conducted by a partnership between the Deceased and their sibling. Both partners had a 50% interest in the Partnership. For the year ended 30 June 20XX, the Partnership produced turnover of under $X million. There are no other connected entities or affiliates that produced any turnover. Various circumstances occurred following the Deceased's death that delayed both properties from being sold, including: • Personal circumstances, illness and the passing of beneficiaries and executors of the Deceased's Estate which impacted their ability to carry out the administration of the Estate. • Legal issues surrounding distributions for beneficiaries that had passed away prior to the administration of the Estate being completed. • Natural disasters that impacted the executors and their ability to administer the Estate. On XX MM 20XX, the sale of Property 1 and Property 2 took place by way of auction. The sales resulted in a capital gain.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-80(3)