Private ruling: CGT - small business concessions
Date of advice: 15 August 2025
Published: 20 October 2025
Ruling period: 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise their discretion under paragraph 103-25(1)(b) of the Income Tax Assessment Act 1997 to allow an extension of time for you to choose to apply the retirement exemption under Subdivision 152-D of the ITAA 1997? | A1: Yes. Due to an oversight, the capital gain wasn't included in the correct tax return. It is clear the small business concessions were not considered, and no choice was made regarding the concessions when the relevant income tax return was initially lodged. Therefore, the Commissioner will provide an extension of time for you to choose to apply the retirement exemption.

Relevant facts and circumstances: You carried on a business. You sold the goodwill of the business under a contract of sale. Your contract was amended by a Deed of Amendment in a subsequent financial year. You erroneously believed that the capital gain should be reported in the year the Deed of Amendment occurred. The tax return for the relevant year was lodged and it did not include the capital gain from the sale of the business. You would like to amend the tax return to correctly record the capital gain. You intend to apply the general 50% discount, the small business 50% active asset reduction and the small business retirement exemption.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 103-25