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  • Applying for an extension on a capital gain rollover

    Sometimes you can choose to roll over, or defer, a capital gain. Generally you make this choice when you lodge your tax return. You may be eligible for an extension of time.

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    When and how you make a choice

    The capital gains tax (CGT) rules allow you to roll over capital gains in some situations. For example, a business that replaces an asset with a similar asset can roll over the capital gain on the original asset.

    As a rule, if you want to roll over a capital gain:

    • you must make your choice by the date you lodge your tax return for the year in which the relevant CGT event happened
    • the information you report in your tax return is sufficient evidence of your choice
    • once you make a choice, it cannot be changed.

    Applying for an extension of time

    We may give you more time to make a choice if you lodged your tax return without being aware that:

    • events had happened that required you to make a choice
    • a choice was available
    • a choice you made was not valid.

    You can apply for an extension by completing a Private ruling application form.

    We will consider your request and tell you our decision. We consider whether:

    • you have an acceptable explanation for not making the choice by the time it should have been made
    • it would be fair and equitable in the circumstances to allow you more time to make a choice
    • prejudice to the ATO might result from additional time being allowed to you (the absence of prejudice by itself is not enough to justify granting an extension)
    • it would be fair to people in similar positions and the wider public interest
    • any mischief is involved.

    Businesses wishing to use the small business CGT concessions can also apply for an extension in situations where they need to take a certain action within a certain period of time.

    For example, a business can apply for an extension if it needs to replace a rollover asset and has not acquired the asset in the time allowed.

    Last modified: 04 Aug 2021QC 66018