In some situations, you need to do something within a certain period of time to qualify for the concessions. A set period is usually prescribed. However, the law also provides the Commissioner with the discretion to allow you a longer period.
Examples include:
Active asset test: relevant business ceased - where your business has ceased, the active asset test requires the CGT event (for example, the sale of a former business asset) to happen within 12 months of the business ceasing, and
Small business rollover: acquisition of replacement asset - under the small business rollover you must acquire a replacement asset or make a capital improvement to an existing asset within the period starting one year before and ending two years after the last CGT event happens in the year for which you choose the rollover.
However, in both these cases, the Commissioner has the discretion to allow a longer period.
In determining whether to allow a longer period, the Commissioner will consider a range of factors such as:
- whether there is evidence of an acceptable explanation for the period of extension requested and whether it would be fair and equitable in the circumstances to provide such an extension
- whether there is any prejudice to the Commissioner if the additional time is allowed (however, the mere absence of prejudice is not enough to justify the granting of an extension)
- whether there is any unsettling of people, other than the Commissioner, or of established practices
- the need to ensure fairness to people in like positions and the wider public interest
- whether there is any mischief involved, and
- the consequences of the decision.