| 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: 1052398757456
Date of advice: 22 May 2025
Ruling
Subject: CGT - small business concessions
Question 1
Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to 30 June 20XX?
Answer 1
Yes, having considered your circumstances and the relevant factors, the Commissioner will use the available discretion to grant the Trust further time to acquire a replacement asset. The director has spent considerable amount of time being treated for a significant medical condition while trying to deal with the legal issues surrounding starting another business. The Trust has until 30 June 20XX to purchase a replacement CGT asset.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The Trust made a capital gain in the year ending June 20XX.
The Trust elected to apply the capital gains tax (CGT) small business roll-over concession to part of the capital gain.
The Trust sold the business, including the business name, goodwill, licenses, leases, equipment and existing employees.
The sole director has spent a considerable amount of time being treated for significant medical conditions.
The Trust was granted a 1 year CGT extension previously and has been in the process of trying to purchase a business in this time frame.
The extension date was until November 20XX.
Over the last year the director has been in active discussions with a supplier of laser machines, which they intended to purchase to start their new business.
The Trust is in the final stages of completing the setup of the new business and wishes to be granted an additional extension.
The director has not signed a contract for a machine but has received a quote on agreed price to purchase them but has not made a deposit yet.
The director has been in consultation with a lawyer to ensure the terms of the original sale agreement have not been breached.
Having to deal with the stress of their ongoing health issues and legal issues has led to further health issues but the director has been treated and making a recovery.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-190(2)
Income Tax Assessment Act 1997 Subdivision 152-E
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).
