Private ruling: The Commissioner's discretion to extend the two year time limit to dispose of a dwelling
Date of advice: 5 February 2026
Published: 23 March 2026
Date scheme commenced: 1 July 20YY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 (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' . This private ruling applies for the following period Year ending 30 June 20YY The scheme commenced on: 1 July 20YY


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


Relevant facts: The deceased owned a dwelling. (The dwelling). | The deceased passed away on DD MM 20YY. | The dwelling was the deceased's main residence. | The dwelling was occupied by person A who is a family member of the deceased prior to their passing and for a period after their death. | The dwelling was not used to produce assessable income. | The land size is less than 2 hectares. | A dispute arose between the beneficiaries of the deceased in relation to the Will. | On DD MM 20YY, a preliminary notice for a Grant of Probate was filed with the Supreme Court on behalf of a beneficiary A & B of the deceased by their solicitors. | On DD MM 20YY, the solicitors wrote to beneficiary C of the deceased noting they had been advised that they were unwilling to act as executors and, as such, the other beneficiaries would make an application for a grant of Probate and requested they sign a renunciation form. | On DD MM 20YY, the legal representative for the beneficiary C responded to the solicitors indicating that they had not renounced the position and did not intend to do so. | For a period of time between late MM 20YY to MM 20YY there were disagreements between the beneficiaries and correspondence was exchanged between the legal representatives. | In late MM 20YY, an agreement between the beneficiaries was reached to appoint a third party as Administrator of the estate. | Between MM 20YY and MM 20YY, the relevant documents were collated and prepared to file the application. This took some time due to the closure of various offices and leave over the holiday period, and delays in retrieving the original Will. | On DD MM 20YY, the solicitors wrote to the Administrator to seek their agreement to act as independent administrator for the estate. The Administrator executed a Consent to Act on DD MM 20YY. | Between MM 20YY and MM 20YY, various Court documents were prepared and collated for the application. On DD MM 20YY, a Summons was filed with the Supreme Court by Administrator A seeking an Order that they be appointed as the independent administrator. | Further Court documents were provided by the solicitors in MM 20YY. | On DD MM 20YY, the Supreme Court made Orders appointing the Administrator as the independent administrator. Appraisals for the property were obtained by the Administrator between from various agents. | On DD MM 20YY, a Grant of Letters of Administration was subsequently issued to the Administrator as the independent administrator by the Court. | In MM 20YY, sales proposals were obtained and by MM 20YY, an agent was selected and thereafter an agency agreement was entered. | Cleaning, maintenance and repair work quotes were obtained which were subsequently considered. The Administrator sought sales reports and pest and building reports. Relevant repair works were carried out to get the property ready for sale. | On DD MM 20YY, instructions were given by the Administrator to Solicitors to prepare a Contract for Sale for the property. Between MM 20YY and MM 20YY, the property was listed and marketed for sale. | On DD MM 20YY, contracts were exchanged for the sale of the property. | On DD MM 20YY, settlement of the sale of the property occurred