EV 1052113081997currentnon-binding advice

CGT - replacement asset roll-over

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

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?

2

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

3

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.

4

Income Tax Assessment Act 1997 paragraph 124-75(3)(b)