Private ruling: Small business replacement asset
Date of advice: 13 June 2019
Published: August 2019
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

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? | A1: Yes. Having regard to your full circumstances and the acceptable explanation of the steps you have taken to acquire a replacement asset, the Commissioner considers it would be fair and equitable for the purposes of section 104-185(1) of the ITAA 1997. Further information on the small business rollover can be found on by searching 'QC52291' on ato.gov.au .

Relevant facts and circumstances: You owned a partnership business as an equal partner. The partnership entered in a contract in YYYY and the partnership assets were sold. Following the sale of the business you sought assistance and acquired a market valuation of the partnership enterprise and its assets. This took several months for you to receive this valuation. The business was valued at $XXXX at the time of disposal. You are satisfied that you meet the maximum net asset value test and you can access the small business CGT concessions. You lodged your income tax return for the year ended 30 June 2018 and have elected to use the SBE small business rollover in respect to the capital gain you incurred. Since the sale of the business you have demonstrated continuous efforts to find a suitable replacement asset.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 103-25 | Income Tax Assessment Act 1997 Subsection 104-185 | Income Tax Assessment Act 1997 Subsection 104-190


Subject: Small business replacement asset: This ruling applies to the beneficiaries of the trust and to the trustee and to any future trustees, for as long as the ruling remains current.