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How to choose a CGT rollover and apply for an extension

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

Last updated 17 June 2024

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.

Apply 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.