Private ruling: CGT - long settlement
Date of advice: 22 September 2025
Published: 10 November 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can the Trust and individuals defer reporting the capital gain on the sale of a property in their income tax returns for the income year ending 30 June 20XX until settlement occurs? | A1: Yes. Settlement of the contract for the sale of the Property is scheduled to occur in November 20XX. At this time the Trust and the individual taxpayers will be required to amend their income tax returns for the income year ending 30 June 20XX to include the capital gain made, as CGT event A1 happened to the Property when the sale contract was executed in November 20XX. TD 94/89 at paragraph 5 states where an assessment is amended to include a net capital gain, and a liability for interest arises, the remission of interest will be dealt with in each case on its own merits. This paragraph makes clear that this amendment must be made within a reasonable time after the date of settlement. In most cases, we would consider a period of one month after settlement to be a reasonable period.

Relevant facts and circumstances: The Trustowned the Property since the 20XX financial year. Person A and person B are beneficiaries and trustees of the Trust. The Property was used a rental property. The Trust entered into a control of sale to sell the Property which was signed in November 20XX. The balance of sale price will be paid X months from date of sale. This is expected to be in November 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10