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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1051409699408

Date of advice: 3 August 2018

Ruling

Subject: Commissioner’s discretion

Question

Will the Commissioner exercise his discretion under section 124-75 of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to XX/XX/XXXX for incurring expenditure on replacement buildings on your farmland?

Answer

Yes.

Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under section 124-75 of the ITAA 1997 and allow an extension of time to XX/XX/XXXX . Further information on the involuntary disposal of a CGT asset can be found on our website ato.gov.au and entering Quick Code QC 17204 into the search bar at the top right of the page.

This ruling applies for the following periods:

Year ended 30 June 2017

Year ended 30 June 2018

Year ended 30 June 2019

The scheme commences on:

1 July 2016

Relevant facts and circumstances

You run a farming enterprise.

You were severely impacted by a fire which impacted approximately the majority of your farm land.

You received insurance proceeds.

You elected to use the rollover in Subdivision 124-B of the ITAA 1997 in relation to the buildings.

You have focused on planning and ensuring all replacement buildings and infrastructure are done so in an appropriate and effective manner.

The scale of the assets/buildings required to be replaced requires substantial planning. You have engaged consultancy services to ensure an appropriate rebuild and are now working towards implementing the plans outlaid.

You have also experienced delays as a consequence of a drought.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 124-75