Private ruling: Small business concessions-deceased estate-extension of time
Date of advice: 12 September 2025
Published: 17 November 2025
Ruling period: Year ending 30 June 2025
Date scheme commenced: 1 July 2024

Ruling: Q1: Will the Commissioner exercise discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the period in which a capital gain can be disregarded on the disposal of the Properties? | A1: Yes. Having considered the relevant circumstances, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 to allow an extension to this period.

Relevant facts and circumstances: The deceased and their spouse purchased several properties (the Properties) more than 2 decades ago. The spouse of the deceased passed away some years before the deceased, and their share in the ownership of The Properties were transferred to the deceased. The Properties were used continuously, first by the spouses and then in partnership with the executor, in carrying on primary production business until the death of the deceased. You were named as a beneficiary in the will and were to inherit the Properties under the terms of the will. The executor of the deceased's will continued to use the Properties for business for more than 12 months after the date the deceased died. Your legal representatives enquired after and pressed for the winding up of this business and transfer of title to the Properties to you as soon as practical. Once title to the Properties were transferred, you engaged a real estate agent to sell the Properties. You began discussions on the sale of the Properties with a potential purchaser. A requirement for the sale of the Properties was the removal of business assets held on the Properties by several unrelated parties. Removal of these business assets by the responsible parties further delayed the sale of the Properties. You signed a contract for the sale of the Properties a little more than 2 years after the death of the deceased.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 152-80(1) | Income Tax Assessment Act 1997 subsection 152-80(3)