Small business rollover

Prior to 1 July 2006

From 1 July 2006

From 1 July 2007

From 1 July 2009

A taxpayer could only choose to roll over all of a capital gain.

A taxpayer can choose to roll over all or part of a capital gain.

No change

No change

A replacement asset could only be a newly acquired asset.

Replacement assets can be newly acquired assets or improvements to assets that the taxpayer already owns.

No change

No change

A taxpayer would have to return a capital gain if they had not acquired a replacement asset by the time required. The taxpayer could seek an amended assessment following acquisition of a replacement asset.

The Commissioner had the power to extend the time allowed to replace the asset.

A taxpayer can choose to roll over a capital gain before acquiring a replacement asset or making a capital improvement (a replacement asset).

Capital gains tax (CGT) event J5 will happen if no replacement assets are held at the end of two years or certain other conditions are not met.

CGT event J6 will happen if insufficient expenditure on replacement assets is incurred by the end of two years.

No change

No change

    Last modified: 21 Jun 2016QC 21145