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Edited version of private advice
Authorisation Number: 1052403267510
Date of advice: 30 May 2025
Ruling
Subject: CGT - compulsory acquisition
Question 1
Will the proposed acquisition of property satisfy the 'same' or 'similar' purpose test for the purposes of subsection 124-75(4) of the Income Tax Assessment Act 1997?
Answer 1
Yes. The Commissioner accepts that the proposed acquisition will satisfy the 'same' or 'similar' purpose test for the purposes of subsection 124-75(4).
This ruling applies for the following period:
Income year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
Entity A owned the properties that were leased to tenants to derive rental income.
A 'Taking of Land' notice was published in the Government Gazette and covered the properties owned by Entity A.
Entity A is considering acquiring a replacement property to derive rental income from leasing it.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 124-75(4)