Private ruling: CGT - extension of time
Date of advice: 18 May 2026
Published: 27 July 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 103-25(1) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you an extension of time until 30 June 20XX to make a choice to apply the small business retirement exemption? | A1: Yes. Having considered the administrative delays in the transfer of the X entitlements and subsequent executor administration, the Commissioner considers this as an acceptable reason and will exercise their discretion under subsection 103-25(1) of the ITAA 1997 to allow an extension of time to make a choice to apply the small business retirement exemption.

Relevant facts and circumstances: The deceased died on D X 20YY. The permanent X entitlements associated with the X property was used by the company. The deceased estate owns X% of the shares in the company, a connected entity. The deceased was the director of the company at the date of their death. Prior to deceased death they initiated and submitted transfer forms to transfer the X entitlements from their personal name to the company's name to align with asset ownership with use in the business. The X authority confirmed and registered the transfer in the 20YY financial year. The capital gain for the X transfer was inadvertently omitted from the relevant tax return. The transfer documents specified nil consideration however the market value substitution rule would apply for CGT. A recent valuation determined market value of the X entitlements to be $XXX,XXX. The deceased was eligible to apply the small business retirement exemption on the capital gain just before their death. Due to the deceased death, administrative delays with the authority, and subsequent executor administration, the written choice for the retirement exemption was not made by the lodgement time of the relevant return.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 103-25(1)(b) | Income Tax Assessment Act 1997 Subdivision 152-D | Income Tax Assessment Act 1997 section 152-305