Private ruling: CGT - deceased estate
Date of advice: 10 February 2026
Published: 30 March 2026
Ruling period: DD MM YY
Date scheme commenced: DD MM YY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of ITAA 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or capital loss you made on the disposal? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'.

Relevant facts and circumstances: You are one of four children of XXXX (the deceased), who passed away on DD MM YY. You were named as the sole executor of the deceased's estate and as the sole beneficiary under the deceased's Will, including the deceased's former main residence located at XXXX (the property). The deceased originally purchased the land as a vacant block in DD MM YY and built the dwelling, residing in it as their main residence from DD MM YY until their death. The property is less than 2 hectares in size. The grant of probate was issued on DD MM YY. On DD MM YY, you received a letter from XXXX Legal, acting for another child of the deceased, advising of a potential contest to the estate. The property was transferred to you on DD MM YY under the terms of the Will. On DD MM YY, a Notice of Discontinuance was filed in the Supreme Court of XXXX, confirming that the other children were no longer contesting the Will. In DD MM YY, you signed a Residential Sales Agreement Schedule with XXXX Real Estate to sell the property. You executed the agreement on DD MM YY, and the agent completed it on DD MM YY. On DD MM YY, XXXX Real Estate advised you that the property would be advertised in a local newspaper on DD MM YY. The email also advised that an online auction was scheduled for DD MM YY. You accepted this auction date. The property was officially listed for sale on online real estate platforms on DD MM YY. The property went to online auction on DD MM YY. There were no registered bidders and no interested parties. The auction remained open briefly but concluded with no bids placed. On DD MM YY, you withdrew the property from XXXX Real Estate after the property remained unsold. On DD MM YY, you relisted the property for sale with a new agent, XXXX from XXXX Real Estate. A Contract for Sale was signed by both you and the purchasers on DD MM YY, with the cooling-off period ending that day. Finance approval was subsequently finalised on DD MM YY. The Contract for Sale signed on DD MM YY was later amended after the purchasers were unable to obtain finance by the agreed date of DD MM YY under the original contract. The amendment provided the purchasers with additional time to secure finance. The property was sold for $XXX, with settlement occurring on DD MM YY.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195