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This edited version has been archived due to the length of time since original publication.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.

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: 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