Private ruling: CGT - compulsory acquisition roll-over
Date of advice: 24 April 2024
Published: 3 June 2024
Ruling period: 1 July 2023 to 30 June 2024
Date scheme commenced: During the period ended 30 June 2023

Ruling: Q1: Will the Trustee of Trust A be eligible to choose to obtain the roll-over under sections 124-70 and 124-75 of the Income Tax Assessment Act 1997 (ITAA 1997) as a result of the compulsory acquisition of land owned by the Trustee of Trust A by a government agency if the Trustee of Trust A incurs at least some expenditure by 30 June 2024 in acquiring replacement land? | A1: Yes.

Relevant facts and circumstances: The Trustee of Trust A owns various assets. A parcel of land owned by the Trustee of Trust A was compulsorily acquired by a government agency for money. The Trustee of Trust A is proposing to acquire replacement land no later than one year after the end of the income year in which the compulsory acquisition happened.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 124-B | Income Tax Assessment Act 1997 section 124-70 | Income Tax Assessment Act 1997 section 124-75

Reasons for decision: Summary: The specific circumstances of Trust A and the proposed acquisition of replacement land by the Trustee of Trust A satisfy the relevant requirements of sections 124-70 and 124-75 of the ITAA 1997. Therefore, the Trustee of Trust A will be eligible to choose to obtain the roll-over under sections 124-70 and 124-75 of the ITAA 1997.