Private ruling: Capital gains tax
Date of advice: 12 September 2025
Published: 10 November 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

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 to dispose of the ownership interest in the property and disregard the capital gain made on the disposal? | A1: 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: The deceased passed away several years ago. The property was purchased by the deceased before 20 September 1985. The property was less than 2 hectares in size. The property was the deceased's main residence just before they passed away. The deceased went into high level care a few years before the date of death. The executor is making the election under Section 118-145 of the ITAA 1997 to treat the property as the main residence of the deceased for the period they were in the home until they passed. beneficiary Z was residing at the property at this time. The deceased had a will distributing the proceeds equally between their children. All beneficiaries were originally joint executors of the will. Two beneficiaries were unable to assist with the administration of the Estate, the third beneficiary assumed the role of sole executor. Probate was granted in the year after the date of death. After the deceased passed their beneficiary Z, continued to live on the property in a caravan. Beneficiary Z suffers from health issues. This resulted in the public trustee being appointed as the guardian for beneficiary Z and orders being made for beneficiary Z to remain in the property. There had been an unreported fire in the kitchen, requiring extensive cleaning and clearing. Insurance claims required extensive negotiation with a cash settlement being agreed to avoid further delay in administering the estate. Settlement took place a couple of years ago.

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