CGT - SBC - replacement asset period - EOT

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.

Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period?

Yes. Having regard to the relevant factors and your circumstances the Commissioner will exercise the discretion in subsection 104-190(2) of the ITAA 1997 to extend the replacement asset period. This ruling applies for the following periods : Year ended 30 June 2026 Year ending 30 June 2027 The scheme commenced on: 1 July 2024

You entered into a contract to sell your business. You made a capital gain on the disposal. You made the choice to apply the small business roll-over to the capital gain. After the sale, you entered into a contract for the purchase of a replacement property. The property contains a vacant lot which you plan to build a new business premises upon. You engaged designers and other professionals. Construction of the new building has commenced; however, there have been multiple delays due to construction product shortages and other issues that have required rectification. You have experienced delays with approvals and finalisation of the plans. You faced further delays due to concrete repairs, major electrical upgrades, and a shortage of trades. You also found asbestos in the electrical cupboard and required further assistance from the electrical company to safely dispose of it.

Income Tax Assessment Act 1997 subsection 104-190(1A) Income Tax Assessment Act 1997 subsection 104-190(2) Income Tax Assessment Act 1997 Subdivision 152-E