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Edited version of private advice
Authorisation Number: 7910137396339
Date of advice: 5 August 2020
Ruling
Subject: Commissioner's discretion for an extension of time to apply the small business rollover
Question
Will the Commissioner exercise his discretion under subsection 104-197(5) of the Income Tax Assessment Act 1997 to extend the replacement asset period?
Answer
Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of the replacement asset period.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You sold a primary production property on xx/month/20xx.
You opted for the capital gains tax (CGT) small business rollover concession.
The Commissioner granted you an extension until xx/month/20xx to acquire a replacement asset.
At the time you were granted an extension there were very few properties listed for sale in State A and State B due to an extended and prolonged period of severe drought until month/20xx.
The outbreak of COVID-19 initially ceased inspections and then made travel and inspections difficult.
During the last quarter of 20xx, you broke your back causing a long period of recovery.
Since month/20xx your disabled child who is severely autistic has suffered an ongoing health issue that is still unresolved. Your child is dependent on you for care and reliant on assistance even for the most basic needs. This has also contributed to difficulties with attending inspections.
With recent rains and lessening of travel restrictions related to COVID-19 there have been more properties available for sale.
You are requesting a six month extension to purchase a property that will provide a suitable income and also be within a reasonable travelling distance for services for your child. If you are unable to find a property that meets your requirements at the end of this period, you will buy a less desirable property to satisfy your CGT obligations.
You are actively looking for a property; you inspected properties, attended auctions and made offers for purchase.
Relevant legislative provisions
Subsection 104-197(5) of the Income Tax Assessment Act 1997
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