Private ruling: Commissioner's discretion
Date of advice: 30 January 2026
Published: 30 March 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in subsection 124-75(3) of the Income Tax Assessment Act 1997 to allow you further time until 30 June 20XX to acquire a replacement CGT asset following the compulsory acquisition of your original CGT asset? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner will allow you further time to incur expenditure in acquiring a replacement CGT asset (or assets).

Relevant facts and circumstances: You held full ownership of one property and shared ownership interest with a family member in an adjoining property, both of which were used for income earning activities over an extend period. The two properties were compulsorily acquired by a government authority. You received compensation for the properties and subsequently obtained additional compensation through legal proceedings. You intend to acquire a replacement asset to continue your income earning activities. You have been actively searching for a suitable property since the government acquisition and in recent years you attended several property inspections, however these properties were too expensive or too small. You have provided several reasons why you have not been able to acquire a replacement CGT asset.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 124-75(3)