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Edited version of private advice
Authorisation Number: 1051602515990
Date of advice: 31 October 2019
Ruling
Subject: Capital gains tax
Question
Will the Commissioner exercise his discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period?
Answer
Yes. Yes. Having considered the relevant factors above, and the particular circumstances of your case, the Commissioner has applied the discretion and will extend the replacement asset period.
This ruling applies for the following period
Year ending 30 June 2020
The scheme commenced on
19 September 2017
Relevant facts
You sold a capital gains tax (CGT) asset for which you elected to use the replacement asset rollover for part of the gain.
You purchased a replacement asset for a portion of the amount soon after the CGT event. You wish to use $xxx of the balance for a replacement asset/capital improvement.
Your business has been significantly impacted in a detrimental way by the ongoing drought conditions.
You have been planning on investing in capital improvements during the two year rollover period.
You have made significant steps towards making the capital improvement, however are still waiting approval on your finance application. You expect the finance to be approved and installation of the capital improvement to be finalised in a few months after the two year period.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 152-E
Income Tax Assessment Act 1997 section 104-185
Income Tax Assessment Act 1997 section 104-190
Income Tax Assessment Act 1997 section 104-197