Private ruling: CGT small business roll-over - extension of time to acquire replacement asset
Date of advice: 8 September 2023
Published: 16 October 2023
Ruling period: Year ending 30 June 2023 | Year ending 30 June 2024
Date scheme commenced: 1 July 2022

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period in respect to a capital gains tax (CGT) small business roll-over? | A1: Yes, having considered your circumstances and the relevant factors, the Commissioner will use the available discretion to grant you further time to acquire a replacement asset.

Relevant facts and circumstances: You were owners of a farming property which was sold in the 2020-21 financial year. You elected to apply the CGT small business roll-over in Subdivision 152-E to your capital gains in your amended 2020-21 income tax return. There has been a limited supply of suitable replacement properties impacting your ability to acquire a replacement asset withing the statutory time frame. COVID-19 restrictions have also impacted your ability to find a replacement asset.

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