| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052127920703
Date of advice: 20 June 2023
Ruling
Subject: CGT - small business concessions - extension of time
Question
Will the Commissioner exercise the discretion in paragraph 103-25(1)(b) of the Income Tax Assessment Act 1997 (lTAA 1997) to allow further time for you to choose to apply the small business retirement exemption to the capital gain you made on the disposal of an active asset?
Answer
Yes. The general rule is that a choice available under the capital gains tax (CGT) provisions once made cannot be changed. Generally, such a choice must be made by the time you lodge your tax return or within such further time as the Commissioner allows. However, in your case, you were not aware that a choice to apply the small business retirement exemption was available to you and as such you did not make a choice before lodging your tax return. In the circumstances, the Commissioner will exercise the discretion to allow further time for you to make the choice.
This ruling applies for the following period:
Year ending 30 June 2024
The scheme commences on:
1 July 2022
Relevant facts and circumstances
You are under 55 years old.
You sold a CGT asset and made a capital gain.
You were unaware that you could make a choice to apply the small business retirement exemption to the capital gain when you prepared your tax return.
If you are allowed further time to make the choice you will make the necessary contribution to superannuation as required by the small business retirement exemption.
Relevant legislative provisions
Income Tax Assessment Act 1997 paragraph 103-25(1)(b)
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
