Edited version of private advice

Authorisation Number: 1051899942287

Date of advice: 16 September 2021

Ruling

Subject: Commissioners discretion for extension of time

Question

Will the Commissioner use his discretion under section 152-80(3) of the Income Tax Assessment Act 1997 to extend the time available to utilise the 15-year small business exemption rule?

Answer

Yes, having considered Person A's circumstances and the relevant factors, the Commissioner is able to apply the discretion under section 152-80(3) of the Income Tax Assessment Act 1997 to allow extra time to 30 June 20XX to utilise the 15-year small business concession.

This ruling applies for the following period:

Year ending 30 June 20XX

The scheme commences on:

11 January 19XX

Relevant facts and circumstances

Person A purchased a property on or around XX XXX 19XX.

Person A ran a business on the property growing various small crops and ran a small number of cattle.

Person A died on XX XXX 20XX.

At the time of death, Person A was XX years of age.

Person A ceased running the business as of XX XXX 20XX.

The property was first listed for sale in XXX 20XX due to repairs and maintenance that was required to be undertaken on the property and the delay in the liquidator receiving financial information.

A contract for the sale of the property for $XXX was entered into on XX XXX 20XX with settlement to occur on or around XX XXX 20XX.

Person A met the basic conditions for the small business capital gains tax (CGT) concessions at the time of his death.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 152-80(3)