Private ruling: Extension of time to apply the small business retirement concession
Date of advice: 26 June 2021
Published: September 2021
Ruling period: Year ended DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise discretion under section 103-25(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997)to allow an extension of time to DD MM YYYY to make a written choice to apply the small business retirement exemption? Answer Yes. Generally, the way you prepare your income tax return is evidence of the making of a choice in relation to CGT. However, an exception is that a choice to apply the small business retirement exemption must be made in writing (paragraph 103-25(3)(b) of the ITAA 1997. You have yet to make a choice in writing to apply the small business retirement exemption. A choice in relation to CGT must be made by the day you lodge the relevant income tax return or within a further time allowed by the Commissioner. Having regard to your circumstances it is considered appropriate to allow you an extension of time to DD MM YYYY to make a written choice to apply the small business retirement exemption.

Relevant facts and circumstances: You owned a share in farmland which was used for income producing purposes. You sold your share in the farmland which resulted in a CGT event (A1). Under Division 152 of the ITAA 1997 you satisfied the basic conditions for relief and consequently have decided to apply the relevant small business concessions. You lodged your YYYY/YY tax return without making the written choice to apply the small business retirement concession and did not make the required contribution into the complying superannuation fund. The tax return was lodged in error by your accountant.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 103-25 | Income Tax Assessment Act 1997 section 152-305 | Income Tax Assessment Act 1997 section 152-315


This ruling applies for the following period periods :