Private ruling: Requesting an extension of the replacement asset period to maintain the small business roll-over concession
Date of advice: 26 June 2021
Published: September 2021
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: XX June 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to XX June 20XX? | A1: Yes. Having considered the relevant facts, the Commissioner will apply his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of the time to XX June 20XX to acquire a replacement asset that satisfies the conditions.

Relevant facts and circumstances: You owned a small business. You sold the small business. Under Division 152 of the ITAA 1997, you satisfy the basic conditions for Capital Gains Tax (CGT) relief and consequently intend to apply the relevant small business concessions including the small business roll-over concession. You purchased a commercial property with the intention to start a new business using the premises and understood that there were significant repairs require prior to communing business. Due to the social and economic impact of COVID-19, the required repairs have been delayed. You are in the process of completing the required repairs.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 104-190