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Edited version of private advice
Authorisation Number: 1052160719566
Date of advice: 25 August 2023
Ruling
Subject: CGT - rollover relief
Question
Will the Commissioner exercise discretion to extend the replacement asset period, pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITA 1997) to DD MM YYYY?
Answer
Yes, given the circumstances you have outlined, it would be fair and reasonable for the Commissioner to grant an extension of the asset replacement period to DD MM YYYY.
Further information on the small business replacement asset rollover can be found on our website by searching for QC 52291.
This ruling applies for the following period:
01 July 20XX to 30 June 20YY
The scheme commenced on:
DD MM YYYY
Relevant facts and circumstances
The Taxpayer sold a half share a property located in X on DD MM YYYY for $X.
Small business CGT concessions were applied to the total capital gain including a small business rollover concession of $X.
The Taxpayer experienced family health issues that required a lot of long-distance travel to/from a major city, as well as impacts from drought, the Covid19 pandemic and flooding across the region.
Land in the region is tightly held and sales are competitive, this has prevented the Taxpayer from purchasing a replacement asset within the 2-year rollover period.
The Taxpayer made some attempts to acquire a replacement property but have been unsuccessful to date.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-190(2)