Will the Commissioner exercise his discretion under paragraph 124-75(3)(b) of the Income Tax Assessment Act 1997 to allow an extension of time to rebuild a dwelling that has been destroyed until 30 June 20XX?
Yes. In your circumstances, your investment property was destroyed by fire. An insurance settlement was later reached, with the intention for the proceeds to be used to rebuild the dwelling. Actions have been taken to find and appoint a builder to rebuild the dwelling despite the challenging circumstances. The Commissioner will exercise the discretion under paragraph 124-75(3)(b) and allow an extension of time to 30 June 20XX. This private ruling applies for the following periods: Year ended 30 June 20XX Year ended 30 June 20XX Year ended 30 June 20XX Year ending 30 June 20XX The scheme commences on: 1 July 20XX
You and your spouse lost a house at your rented a property in the bushfires. The property is located, in a remote area, which was devastated by the bushfires. You received from your insurance company a lump sum of $XXX,XXX to rebuild the rented property. You have found it difficult to find people to rebuild the house. You elected via your 20XX return to apply the capital gains tax (CGT) relief available to you under subdivision 124-B ITAA 1997 roll over relief. To date, you made attempts to replace the house but have found it extremely difficult to find builders to go to the area and rebuild. This is due to COVID 19 lockdowns and the high demand trades people in the local area as well as nationally. You have already cleared the land and prepared the site for rebuilding. You have engaged a builder; however, you are part of a long list of construction projects they currently have on hand.
Income Tax Assessment Act 1997 section 104-20 Income Tax Assessment Act 1997 subdivision 124-B Income Tax Assessment Act 1997 section 124-10 Income Tax Assessment Act 1997 section 124-70 Income Tax Assessment Act 1997 section 124-75