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Edited version of private advice
Authorisation Number: 1051581533743
Date of advice: 16 September 2019
Ruling
Subject: Small business relief - replacement asset period - extension
Question
Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to a specific date?
Answer
Yes. Having regard to your full circumstances, the Commissioner considers it would be fair and equitable for the purposes of section 104-190(2) of the ITAA 1997 to extend the replacement asset period to the specific date. Further information on the small business rollover can be found on by searching 'QC52291' on ato.gov.au.
This ruling applies for the following period:
End of financial year 2020
The scheme commences on:
1 July 2017
Relevant facts and circumstances
In the 2018 financial year, you (husband and wife), disposed of your business active asset. You were entitled to apply the small business concession regarding the capital gain from the sale of the asset and thus you elected to apply the small business asset rollover under Subdivision 152-E of the ITAA 97.
The end of the replacement asset period is occurring this year.
One of you is severely unwell and has been undergoing treatment for this illness, which has significantly hampered your ability to procure a replacement asset. You provided a letter of your spouse's specialist.
You request an extension to the replacement asset period in order to give yourself sufficient time to find a replacement asset.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 152-E
Income Tax Assessment Act 1997 Subsection 103-25
Income Tax Assessment Act 1997 Subsection 104-190
Further issue for you to consider
This ruling has not considered your eligibility for the small business roll-over concession. You should ensure that you satisfy the basic conditions and the other conditions relevant for the concession. More information can be found at CGT concessions for small business, which is available on our website ato.gov.au.