Edited version of private advice

Authorisation Number: 1051895896537

Date of advice: 4 September 2021

Ruling

Subject: Small business concessions - extension of time

Question

Will the Commissioner use his discretion to extend the replacement asset period pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 in respect of the Small Business CGT replacement asset rollover relief?

Answer

Yes. Having considered your circumstances and the relevant factors, the Commissioner considers it appropriate to grant an extension of the replacement asset period to 30 June 2022.

This ruling applies for the following period:

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You had a capital gains tax (CGT) event in 20XX. The CGT event resulted in a capital gain of $X which was rolled over under the small business rollover.

At the end of the two-year period following the CGT event, there was $Y of uncrystallised gain still remaining and you applied for a private ruling in 20XX for an extension of time until 30 June 20XX.

You have requested additional extensions of time which have been granted due to your circumstances.

Since the previous ruling, you have acquired additional active assets.

Further additional capital improvements that would qualify as replacement assets are planned but had been delayed due to legal disputes. Mediation has since occurred, facilitating the installation of some of the relevant capital assets, but delays are still being experienced due to other reasons. As such, further capital costs will be incurred after 30 June 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 104-190(2)