Private ruling: CGT - extension of time
Date of advice: 27 October 2025
Published: 15 December 2025
Ruling period: Year ended XX June 20XX
Date scheme commenced: XX 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'.

Relevant facts and circumstances: The deceased passed away a few years ago. The deceased lived at the property. The property was purchased by the deceased a number of years ago. The property was the deceased's main residence for the whole of their ownership period. The property was less than 2 hectares in size. The deceased passed away intestate. Letters of administration were granted to the deceased's child. The reason for the property not selling within the 2 year period as per the legislation was: • The unit was destroyed in an incident during which the deceased passed away. • An insurance claim was made. • The body corporate dealt with the funds for rebuild and no payout was made - all the rebuild was done through the body corporate. • The unit was demolished within a few weeks of the incident as it was found to be structurally unsafe. • The deceased's child became Registered Proprietor of property. • The property was still uninhabitable when the deceased's child became the owner. • Insurance tenders were sent out for rebuild of the property. • Building approvals and certification not complete until the end of the year after the incident. • Works began on site a few months once a contractor was chosen after receiving building approvals and certification. • Certificate of Occupancy granted several months after works began. • Fit outs of Air conditioning, Curtains / Blinds caused further delays. The front and back yard was required to be dug out due to remaining debris including glass and the yard was redone and prepared for sale. • Real estate agent first enlisted in MMYYYY and the property sold on DDMMYYYY.



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