ato logo
Search Suggestion:

Extensions of time

Last updated 11 August 2021

In some situations, you need to take action within a prescribed period of time to qualify for the concessions. However, the law also provides the Commissioner with the discretion to allow you a longer period.

Examples include:

  • Where your business has ceased, the active asset test period for a CGT event (for example, the sale of a former business asset) ends when the business ceased if that occurred in the 12 months before the CGT event.
  • If you previously chose the small business rollover and you don't acquire a replacement asset or make a capital improvement to an existing asset within the prescribed period, then a further CGT event happens. The prescribed period starts one year before and ends two years after the last CGT event happens in the year for which you choose the rollover

However, in both these cases, the Commissioner has the discretion to allow a longer period.

In determining whether to allow a longer period, the Commissioner will consider a range of factors, such as:

  • whether there is evidence of an acceptable explanation for the period of extension requested, and whether it would be fair and equitable in the circumstances to provide such an extension
  • whether there is any prejudice to the Commissioner if the additional time is allowed (however, the mere absence of prejudice is not enough to justify the granting of an extension)
  • whether there is any unsettling of people, other than the Commissioner, or of established practices
  • the need to ensure fairness to people in like positions and the wider public interest
  • whether there is any mischief involved
  • the consequences of the decision.