Private ruling: CGT - replacement asset roll-over
Date of advice: 10 May 2023
Published: 26 June 2023
Ruling period: Year ending 30 June 20YY | Year ending 30 June 20YY
Date scheme commenced: DD/MM/YYYY

Ruling: Q1: Will the Commissioner exercise the discretion in paragraph 124-75(3)(b) of the Income Tax Assessment Act 1997 to allow you further time to incur expenditure of a capital nature in replacing, repairing or restoring assets destroyed by fire? | A1: Yes. The Commissioner will exercise the discretion and allow further time to replace, repair or restore the destroyed assets. It is considered that your circumstances warrant the extra time. Further information on the capital gains tax (CGT) treatment of CGT assets involuntarily disposed of can be found by searching 'QC 66017' on ato.gov.au.

Relevant facts and circumstances: You operate a tourism business. Your business was impacted by a bushfire which damaged and destroyed CGT assets owned by you. Due to your business being located in a remote location, a lack of accommodation and many other buildings in the area affected there is limited availability of tradespeople. You are also experiencing delays due to evolving local and state government policies which directly impact your business. You have incurred some expenditure in replacing, repairing and restoring the damaged and destroyed assets.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 124-75(3)(b)