Private ruling: Commissioner's discretion - extension of time
Date of advice: 29 July 2025
Published: 29 September 2025
Ruling period: DDMM20YY
Date scheme commenced: DDMM20YY

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? | A1: Yes. Having considered your circumstances and the reasons for delay, the Commissioner will exercise the discretion under subsection 104-190(2) of the ITAA 1997 to extend the replacement asset period.

Relevant facts and circumstances: You and your partner owned a beef cattle property as joint tenants. You entered into a contract to dispose the property. You intended to purchase a replacement asset within 2 years of your sale but have been unsuccessful. Your reasons for the delay in acquiring a new asset include: • Difficult market conditions caused by a decline in cattle prices • Significant rain events which limited vendors from bringing potential properties to the market. You have made enquiries for multiple properties to identify a suitable replacement asset during the replacement asset period, which have been unsuccessful. This includes: • You inspected a nearby property but were unsuccessful as the property sold for a much higher price than what you were able to offer. • You entered into an online auction for a property but were unsuccessful. • You considered and discussed with a local agent an expression of interest for a block of farmland and grazing property. This was postponed by the vendor due to weather conditions. • You attended to various other enquiries with rural property agents in the district to identify and pursue the purchase of a suitable beef cattle property. You are currently in the process of acquiring a property. You first enquired about this property within the replacement asset period and made an offer. The property was subject of an estate dispute which delayed the transaction. The dispute has recently been resolved. You have been negotiating with the vendor and they have now accepted your offer. Your legal representative is currently preparing the purchase contract, which is expected to be executed in the near future.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-E | Income Tax Assessment Act 1997 subsection 104-190(1A) | Income Tax Assessment Act 1997 subsection 104-190(2)