Private ruling: CGT - s mall business
Date of advice: 4 July 2025
Published: 1 September 2025
Ruling period: Year ending 30 June xxxx | Year ending 30 June xxxx | Year ending 30 June xxxx | Year ending 30 June xxxx
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? | A1: Yes. Having regard to the relevant facts and circumstances, including the health issues and difficulties finding a suitable replacement business, the Commissioner will exercise the discretion and extend the replacement asset period.

Relevant facts and circumstances: You entered into a contract to sell your business. Shortly after the sale you entered into a contract for the purchase of a replacement business. Due to health issues the purchase of the business did not proceed. You had regular communication with a broker however a suitable replacement business couldn't be found within the replacement asset period. You entered into contracts to acquire 100% of the shares in a new business. The shares will be held by you and are an active asset which will be used as the replacement asset. Settlement has occurred on the new business.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 104-190(2)