Private ruling: The Commissioner's discretion to extend the two year time limit to dispose of a dwelling
Date of advice: 2 December 2021
Published: January 2022
Ruling period: Year ended 30 June 2022.
Date scheme commenced: 1 July 2021.

Ruling: Q1: Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion for up to two hectares of land with your dwelling under subsection 118-195(1) of the ITAA 1997 and allow an extension of time.


Relevant legislative provisions: Income Tax Assessment Act 1997 subdivision 115-A | Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 118-120 | Income Tax Assessment Act 1997 section 118-130 | Income Tax Assessment Act 1997 section 118-195


The deceased acquired a dwelling (the dwelling). | The dwelling is located on land that is less than two hectares. | The dwelling was the deceased's main residence when they passed away in 20xx. | COVID-19 has impacted on your ability to prepare the dwelling for sale as you encountered difficulties in undertaking some repairs to the dwelling as trades people were in demand. | A significant amount of rubbish was required to be removed | The dwelling was placed on the market and sold a short time later. | The contract is unconditional | Settlement will occur in 20xx. | Assumption: Settlement will occur on or before xx x 20xx