Private ruling: CGT- small business concessions - rollover relief
Date of advice: 21 August 2023
Published: 3 October 2023
Ruling period: Year ending 30 June 20XX
Date scheme commenced: DDMMYYYY

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 to 30 June 20XX? | A1: Having considered the relevant factors and your specific circumstances the Commissioner will exercise his discretion under subsection 104-190(2) of the ITAA 1997 to extend the replacement asset period.

Relevant facts and circumstances: The original CGT event occurred on the DDMM 20XX, and after applying the 50% general discount and active asset reduction, a taxable gain was remaining to which the small business rollover was applied. Since then, the client was affected by a number of significant events relating to the farming enterprise including flooding and the COVID pandemic. COVID has affected the taxpayers in a number of ways including ill health. For over a year the taxpayer has been suffering from long COVID. These circumstances have ultimately made acquiring a replacement asset within the two-year period impossible. It is only of the last couple months the taxpayer has been able to attend other business matters including looking at a number of replacement assets including property and other assets. On these grounds our client would like to apply on compassionate grounds for an extension of the two year period or which to acquire a replacement asset under the small business rollover concession.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 124-75(3)(b) | Income Tax Assessment Act 1997 subsection 104-190(2)