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Edited version of private advice
Authorisation Number: 1052113081997
Date of advice: 10 May 2023
Ruling
Subject: CGT - replacement asset roll-over
Question
Will the Commissioner exercise the discretion in paragraph 124-75(3)(b) of the Income Tax Assessment Act 1997 to allow you further time to incur expenditure of a capital nature in replacing, repairing or restoring assets destroyed by fire?
Answer
Yes. The Commissioner will exercise the discretion and allow further time to replace, repair or restore the destroyed assets. It is considered that your circumstances warrant the extra time.
Further information on the capital gains tax (CGT) treatment of CGT assets involuntarily disposed of can be found by searching 'QC 66017' on ato.gov.au.
This ruling applies for the following periods:
Year ending 30 June 20YY
Year ending 30 June 20YY
The scheme commenced on:
DD/MM/YYYY
Relevant facts and circumstances
You operate a tourism business.
Your business was impacted by a bushfire which damaged and destroyed CGT assets owned by you.
Due to your business being located in a remote location, a lack of accommodation and many other buildings in the area affected there is limited availability of tradespeople.
You are also experiencing delays due to evolving local and state government policies which directly impact your business.
You have incurred some expenditure in replacing, repairing and restoring the damaged and destroyed assets.
Relevant legislative provisions
Income Tax Assessment Act 1997 paragraph 124-75(3)(b)