Private ruling: CGT - small business replacement asset rollover
Date of advice: 22 May 2023
Published: 10 July 2023
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to acquire a replacement asset? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner considers it appropriate to grant an extension of the replacement asset period.

Relevant facts and circumstances: You sold your asset in the financial year ending 30 June 20XX, resulting in a capital gain which was rolled over under Subdivision 152-E of the ITAA 1997. COVID-19 and the demand for similar assets hindered your ability to acquire a replacement asset prior to the replacement asset period ending. Due to the initial issues finding a replacement asset, you had considered either making payment of the retirement exemption to complying superannuation fund under paragraph 152-305(1)(c) of the ITAA 1997 or to fund the income tax payable on a J5 capital gain. You had funds stolen resulting in a large financial loss. You now need additional time to release equity from other properties to fund the replacement asset.

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