Private ruling: Income Tax - CGT - Small business rollover
Date of advice: 29 July 2021
Published: October 2021
Ruling period: Year Ending 30 June 20XX | Year Ending 30 June 20XX | Year Ending 30 June 20XX
Date scheme commenced: XX XXXX 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period in respect of the small business capital gains tax (CGT) replacement asset roll-over? | A1: Yes. Having considered your full circumstances, the Commissioner considers it would be fair and equitable for the purposes of section 104 - 190(2) of the ITAA 1997 to extend the replacement asset period from XXXX to XXXX and allow the small business roll - over under Subdivision 152 - E of the ITAA 1997.

Relevant facts and circumstances: You entered into a contract on XXXX to sell two of your properties. On XXXX you were paid a deposit of $XXX by the purchaser. An instalment of $XXX was to be paid to you on XXXX. The purchaser failed to pay the instalment of $XXX and terminated the contract. As per the terms of the contract you were entitled to keep the deposit of $XXX. Pre-empting that the sale of your properties would go through you purchased X replacement properties. You entered into contracts to purchase replacement properties on the basis that the sale of your X properties would settle and you intended on utilising the small business rollover relief. You calculated your capital gain for the forfeiture of the deposit to be $XXX before the application of the small business CGT concessions. You satisfy the basic conditions in Subdivision 152-A of the ITAA 1997.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-185 | Income Tax Assessment Act 1997 section 104-190


This ruling applies for the following periods: