Private ruling: Extension to the two-year ownership period
Date of advice: 12 May 2021
Published: July 2021
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | 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
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 and allow an extension of time until settlement date? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. The main residence exemption is only available to be applied to a maximum area of adjacent land of 2 hectares, less the area of the land immediately under the dwelling in accordance with subsection 118-120(3) of the ITAA 1997.Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased and the deceased's spouse purchased a property (the property) after 20 September 1985. The property was over XX hectares. The deceased passed away during the year ended 30 June 20XX. The property was always treated as their main residence and never used to produce income. The deceased's will provided the deceased's spouse with a right to occupy the premises until the death. The deceased's spouse lived solely in the property up until the death during the year ended 30 June 20XX. XX months after the deceased's spouse's death, the property was promptly listed for sale. The property was sold XX months after the deceased's spouse's death. The property was settled XX months after the deceased's spouse's death.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1) | Income Tax Assessment Act 1997 subsection 118-120(3)


This ruling applies for the following periods: