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.
Find out when and how you can choose to roll over a capital gain, and how to get an extension of time.