Private ruling: Income tax - CGT - 2 year Commissioner's discretion
Date of advice: 11 September 2025
Published: 10 November 2025
Ruling period: For the income year ended 30 June YYYY
Date scheme commenced: 1 July YYYY

Ruling: Q1: Will the Commissioner exercise his discretion to extend the 2 year time limit under section 118-195 of the Income Tax Assessment Act 1997 and disregard any capital gain or capital loss you made on the disposal of the property? | 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: The Property that is the subject of this ruling was situated at X (the Property) (Folio identifier X). The Property is on land less than 2 hectares. X (the Grandparent) left a will dated DDMMYYYY and they passed away on DDMMYYYY. X is the legal personal representative (Executor) for The Trustee For X Grandparent's Estate. The Letters of Administration were granted on DDMMYYYY. The Grandparent left their residuary estate which included their ownership interest in the Property to their Great-Grandchildren (the Great-Grandchildren). The Grandparent's child, X (the Parent) left a will dated DDMMYYYY and they passed away on DDMMYYYY. Probate for the Parent's Estate was granted on DDMMYYYY. The Parent left a life interest in their ownership interest in the Property to the Grandparent and the residual of their estate, including the remainderman interest in the Property to their own Child X (the Parents Child). A Declaration of Trust dated DDMMYYYY has been provided to us. The trust deed states that the Grandparent, as Trustee of their late her late Spouse's Estate (X) signed a contract to purchase the Property for $X in order to hold the asset on trust for their Children (the Children Beneficiaries), and themselves as tenants in common in equal ownership shares. Once the Children Beneficiaries reached 21 years of age the legal title to the Property was to pass to them, or soon thereafter if they were to call on the Trustee of the trust to do so at any time. Legal title was never transferred to Children Beneficiaries and the Grandparent was solely on the legal title to the Property since DDMMYYYY. An Exemplification of the Letters of Administration of the Estate of the Grandparent was granted on DDMMYYYY and the legal title was transferred to the Executor of the Grandparents Estate on DDMMYYYY. The Property has never been used to produce rental income and has always been the main residence of the late Grandparent X, the late Parent X, the Children Beneficiaries X, the Executor X and the Great-Grandchildren. The contract for the sale of the Property was exchanged on DDMMYYYY for $X. Settlement occurred on DDMMYYYY.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 118-195