Private ruling: Commissioner's discretion to extend the two year time limit to dispose of a dwelling
Date of advice: 9 October 2025
Published: 24 November 2025
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 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 20xx The scheme commenced on: 1 July 20xx


Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195 Note: | Land adjacent to a dwelling may also qualify for the main residence exemption if it and the dwelling are sold together and both of the following apply: | • during the period you owned it, you used the land mainly for private and domestic purposes in association with the dwelling, and | • the total area of the adjacent land and the land on which the dwelling stands is not more than two hectares (4.94 acres). | If the adjacent land is used for private purposes and is greater than two hectares, you can choose which two hectares are exempt. The remainder is subject to CGT. | If any part of the land around a dwelling is used to produce income, it is not exempt, even if the total land area is less than two hectares.


Relevant facts: The deceased passed away on XX XX 20XX. | The deceased owned a dwelling. (The dwelling). | The dwelling was acquired on xx xx 19xx. | The dwelling was the main residence of the deceased and was never used to produce assessable income. | The land size is greater than 2 hectares. | Probate was granted xx xx 20xx. | Excessive hoarding by the deceased and the conditionof property caused some delays in preparing the dwelling for sale. The surrounding land had extensive overgrowth which required clearing prior to sale. | It took a long time to sort through belongings in order to separate and preserve items of sentimental or personal value, while discarding unwanted items. Assistance from community organisations was required to assist with removal of excessive belongings. The preparation required several skip bins of waste disposal. | An executor suffered an illnessand was unable to assist with any preparation of the dwelling for sale due to long term chronic illness and they are now in palliative care. | The sale process tooklonger than first envisaged. The dwelling was listed as soon as practical after probate; however, its remote location, large rural size, and unusual nature meant fewer potential buyers, which contributed to delays despite sustained marketing efforts. | The dwelling was listed for sale xx xx 20xx. | A conditional offer was made on xx xx 20xx This was not accepted. | A subsequent conditional offer was made by a separate potential purchaser on xx xx 20xx. This purchaser did not proceed. | A contract for the sale was entered into on xx xx 20xx. | Settlement took place xx xx 20xx.