Private ruling: Commissioner's discretion - extension of time
Date of advice: 16 May 2025
Published: 21 July 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 20XX

Ruling: Q1: Will the Commissioner exercise his discretion in subsection 124-75(3) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow the extension of time until 30 June 20XX to the Trustee for incurring expenditure to acquire a replacement asset from the proceeds received pursuant to the compulsory acquisition of their asset to meet the eligibility requirements for a Subdivision 124-B of the ITAA 1997 roll-over? | A1: Yes. Having considered the relevant facts, the Commissioner will exercise his discretion under Subdivision 124-B of the Income Tax Assessment Act 1997 (ITAA 1997) to allow until 30 June 20XX to acquire the acquisition of a replacement asset. It is considered that, until the resolution of the legal proceedings, the taxpayer is prevented from identifying and acquiring an appropriate replacement asset. Accordingly, it is fair and equitable to allow the extension.

Relevant facts and circumstances: You owned land which was compulsorily acquired by an Australian government agency. The Trustee subsequently obtained a private ruling, in which the Commissioner exercised his discretion to extend the period allowed to acquire a replacement asset to 30 June 20XX. A further private ruling was later obtained, in which the Commissioner again exercised his discretion to extend the acquisition period to 30 June 20XX. The Trustee advises it is currently awaiting a decision from the Court. The Trustee has received verbal advice from its legal representative indicating that a resolution is unlikely to be reached within the next XX months.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 124-75