Private ruling: Capital gains tax and tax rates
Date of advice: 18 December 2018
Published: April 2019
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time to XX XXXXX 20XX 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 will allow an extension of time. Further information about the discretion can be found on our website ato.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page. | Q2: Will the Commissioner exercise his discretion under subdivision 99A(2) of the Income Tax Assessment Act 1936 (ITAA 1936) to apply progressive individual rates of tax as per section 99 of the ITAA 1936? | A2: Yes. After consideration of the relevant factors, the Commissioner is of the opinion that it would be unreasonable that section 99A of the ITAA 1936 should apply in relation to that trust estate in relation to the relevant years of income. Accordingly section 99 of the ITAA 1936 will apply.

Relevant facts and circumstances: The Deceased died on XX XXX 20XX (date of death). After 1985 the Deceased acquired an ownership interest in a property (the property) which was their main residence up until their date of death. The property was not used to produce income either before or after the date of death. On XX XXXX 20XX, the Executor was put on notice that there was a claim against the Deceased Estate for family provision. On XX XXX 20XX all claims, issues and disputes in relation to the Deceased’s estate were settled. On XX XXX 20XX an Agency Agreement was entered into and the property listed for sale. On X XXXX 20XX the contract for the sale of the property was exchanged. Settlement for the property occurred on XX XXXX 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 99A | Income Tax Assessment Act 1997 section 118-195