Private ruling: Replacement asset period
Date of advice: 13 May 2020
Published: June 2020
Ruling period: Year ended 30 June 20xx | Year ended 30 June 20xx | Year ended 30 June 20xx
Date scheme commenced: 1 July 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 to XX/XX/XXXX? | A1: Yes. Having considered the relevant factors, and the particular circumstances of your case, the Commissioner has applied his discretion and will extend the asset replacement period to XX/XX/XXXX.

Relevant facts and circumstances: In the 20XX financial year you made a capital gain. On XX/XX/XXXX you were advised by your accountant that you were eligible to apply the small business rollover in subdivision 152-E of the Income Tax Assessment Act 1997 to the capital gain, which you did with the intention of purchasing a replacement asset. During the time remaining of the two year period to obtain a replacement asset, you examined three business opportunities, however each opportunity fell through. Since the expiry of the two year period, you have continued to make efforts to acquire a replacement asset. You have now settled on an appropriate business and started finalising plans to purchase the replacement asset. You anticipate being able to acquire the replacement asset by XX/XX/XXXX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 104-190(2) | Income Tax Assessment Act 1997 Subdivision 152-E