Private ruling: CGT - replacement asset period
Date of advice: 17 April 2024
Published: 27 May 2024
Ruling period: Year ended 30 June 2025
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 to 30 June 2025? | A1: Yes. The director of your corporate trustee has been actively looking for a replacement asset; however, due to the illness of their family member and their role as the sole carer of their elderly family members a replacement asset has not been acquired. The Commissioner will exercise the discretion and extend the replacement asset period to 30 June 2025 .

Relevant facts and circumstances: You are a discretionary trust. You have a corporate trustee. You sold an active asset and made a capital gain. You chose to apply the capital gains tax small business roll-over to the capital gain you made on the disposal of the active asset. The director of your corporate trustee has been actively looking for a replacement asset and had some under consideration when their family member was diagnosed with an illness. Since the diagnosis the director has taken on the sole carer role for both of their elderly family members.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 104-190(1A) | Income Tax Assessment Act 1997 subsection 104-190(2) | Income Tax Assessment Act 1997 section 104-197 | Income Tax Assessment Act 1997 section 104-198 | Income Tax Assessment Act 1997 Subdivision 152-E