Private ruling: Extension of time - CGT small business concessions
Date of advice: 9 January 2026
Published: 2 March 2026
Ruling period: 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) for an extension of time to purchase a replacement asset until XX September 20XX? | A1: Yes.

Relevant facts and circumstances: The small business owner undertakes a primary production business. The small business owner entered a contract to purchase a new rural property (Property A) on XX September 20XX (with extended settlement to XX July 20XX). The business owner will continue carrying on their primary production business on Property A as the replacement asset. The business owner purchased Property A with the intention of selling part of their existing property (Property B) on which the business has been conducted for the past X years. The business owner subdivided Property B. Due to the location of Property B alongside a traveling stock route (TSR), necessary permissions were required to be obtained from Crown Lands and Local Land Services before this subdivision could be approved by the local government area council for access purposes. This process took longer than expected due to council and titles offices and the subdivision approval was also delayed. The business owner had a buyer express interest to purchase in June 20XX, however the buyer would not enter into a contract until the subdivision certificate was issued, and an access road was constructed. A contract was not entered into until X December 20XX for Property B.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-E | Income Tax Assessment Act 1997 section 152-410 | Income Tax Assessment Act 1997 section 104-190

Reasons for decision: Summary: Yes, the Commissioner will exercise the discretion under subsection 104-190(2) of the ITAA 1997 to allow an extension of time until XX September 20XX. | Detailed Reasoning - Detailed reasoning: Section 152-410 of the ITAA 1997 states that a rollover can be obtained under this section for a capital gain if the basic conditions in Subdivision 152-A of the ITAA 1997 are satisfied. A roll-over can be chosen even if the replacement asset has not been purchased or you have not yet incurred fourth element expenditure. The replacement asset period as outlined in subsection 104-190(1A) of the ITAA 1997 starts one year before the last CGT event and ends 2 years after that CGT event. The Commissioner has the discretion to extend the replacement asset period under subsection 104-190(2) of the ITAA 1997. | Detailed Reasoning - Factors the Commissioner considers whether to allow a longer period:: In determining whether to allow a longer period, the Commission will consider a range of factors such as: • whether there is evidence of an acceptable explanation for the period of extension requested and whether it would be fair and equitable in the circumstances to provide such an extension • whether there is any prejudice to the Commissioner if the additional time is allowed • whether there is any unsettling of people, other than the Commissioner, or of established practices • the need to ensure fairness to people in like positions and the wider public interest • whether there is any mischief involved • the consequences of the decision | Detailed Reasoning - Application to your circumstances: The replacement asset period as outlined in subsection 104-190(1A) of the ITAA 1997 starts one year before the last CGT event and ends 2 years after that CGT event. In these circumstances the replacement asset has not been purchased within the replacement asset period. The facts provide that attempts were made to acquire the replacement asset and sell the original asset which triggers the CGT event during the replacement asset period. Having considered the circumstances, the Commissioner will grant an extension of time under subsection 104-190(2) of the ITAA 1997 until XX September 20XX for the purchase of the replacement asset.