Private ruling: CGT - small business concession
Date of advice: 10 December 2025
Published: 27 January 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise its discretion under paragraph 103-25(1)(b) of the Income Tax Assessment Act 1997 ( ITAA 1997) to grant an extension of time to make a choice to apply the small business retirement exemption under Subdivision 152-D of the ITAA 1997 to a capital gain that arose to the Taxpayer in the income year ended 30 June 20XX? | A1: Yes. In the particular circumstances described, the Commissioner will allow further time under paragraph 103-25(1)(b) of the ITAA 1997 for the taxpayer to choose the small business roll-over in Subdivision 152-D of the ITAA 1997.

Relevant facts and circumstances: You operated a business. You are a small business entity for the purposes of section 328-110 of the Income Tax Assessment Act 1997 (ITAA 1997). The significant individual in accordance with section 152-50 of the ITAA 1997 is over age 55. You entered a contract to sell the business resulting in a capital gain event. You used a registered tax agent, to lodge the relevant income tax return. There was a net capital gain. At the time of the preparation and lodgement of the income tax return you were not aware of the availability of the small business retirement exemption under section 152-D of the ITAA 1997. The tax agent failed to advise that this exemption may be available. As a result, no choice was made to use this exemption to disregard all or any part of the remaining capital gain pursuant to section 152-305 of the ITAA 1997.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 103-25(1)(b) | Income Tax Assessment Act 1997 Subdivision 152-D | Income Tax Assessment Act 1997 section 152-50 | Income Tax Assessment Act 1997 section 152-305 | Income Tax Assessment Act 1997 section 328-110