Private ruling: Small business replacement asset - extension of time
Date of advice: 14 December 2020
Published: February 2021
Ruling period: Period ending XXXX
Date scheme commenced: 1 July XXXX

Ruling: Q1: Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 to extend the replacement asset period in respect of the small business capital gains tax (CGT) replacement asset roll-over relief? | A1: Yes Having considered the relevant facts, the Commissioner will apply his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of the time to XXXX.

Relevant facts and circumstances: You disposed of your farming land at auction on XXXX and relocated to X. You elected to use the replacement asset roll-over of the small business Capital Gains Tax concessions in your XXXX income tax return. Your intention has always been to acquire a replacement asset within the 2 year timeframe under the replacement asset provisions. You have been actively searching for replacement asset however this has been impacted with onset of the COVID 19 pandemic and subsequent lockdowns. This has impacted the number of properties suitable for purpose available in the X marketplace with severe restrictions to inspection opportunities making the acquisition of a replacement asset(s) so far not possible, despite making a number of offers, you have to date been unsuccessful. Given the impacts of the COVID 19 pandemic, you are requesting the Commissioner exercises his discretion under Section 104-190(2) ITAA 1997 to extend the replacement asset period until the XXXX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-E | Income Tax Assessment Act 1997 Section 104-190