Private ruling: Extension of time - capital gains tax (CGT) small business concessions
Date of advice: 28 October 2025
Published: 15 December 2025
Ruling period: 30 June 2025
Date scheme commenced: 1 July 2024

Ruling: Q1: Will the Commissioner grant an extension of time for the sale of the property under subsection 152-80(3) of the ITAA 1997 until X? | A1: Yes.


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

Reasons for decision: Summary: Section 152-80 of the ITAA 1997 allows either the legal personal representative of an estate or the beneficiary to apply the CGT small business concessions in respect of the sale of the deceased's asset in certain circumstances. Under paragraph 152-80(1)(d) of the ITAA 1997, a CGT event must happen in relation to the CGT asset within two years of the individual's death. The Commissioner has the discretion to extend the time limit under subsection 152-80(3) of the ITAA 1997. Paragraph 152-80(3) of the ITAA 1997 states the Commissioner may extend the time limit in paragraph (1)(d). Factors Commissioner considers whether to allow a longer period: In determining whether to allow a longer period, the Commission will consider a range of factors such as: • whether there is evidence of an acceptable explanation for the period of extension requested and whether it would be fair and equitable in the circumstances to provide such an extension • whether there is any prejudice to the Commissioner if the additional time is allowed • whether there is any unsettling of people, other than the Commissioner, or of established practices • the need to ensure fairness to people in like positions and the wider public interest • whether there is any mischief involved • the consequences of the decision | Detailed Reasoning - Application to circumstances: Under paragraph 152-80(1)(d) of the ITAA 1997, a CGT event must happen in relation to the CGT asset within two years of the individual's death. The Commissioner has the discretion to extend the time limit under subsection 152-80(3) of the ITAA 1997. In these circumstances the CGT event, which is the sale of the farming property has not occurred within the two years of the deceased's death. During these two years there were circumstances present which caused delays in selling the farming property. It is evident you took immediate steps to sell the property once you were legally able to. Given there were circumstances beyond the executor's control that impeded the sale of the property within the two years and an extension of time can be granted as per subsection 152-80(3) of the ITAA 1997. Having considered the circumstances, the Commissioner will grant an extension of time under subsection 152-80(3) ITAA 1997 until X for the sale of the farming property.

The deceased owned the farm property and operated a primary production cattle business on this property prior to their death on X. | The deceased is your Parent A. | The executors of the estate were granted probate by the Supreme Court of Queensland in July 20XX. | The deceased's will provided that you, the beneficiary was to inherit the property once you reached the age of X. | The will stated that, if you failed to survive the deceased or attain the age of X then the property would pass to your sibling. | At the time of the deceased's passing, you were X years old. | The executors of the estate were registered on the property title on August 20XX to hold the property on trust for you until you obtained the age of X. | In the period following, negotiations began between the executors and their legal counsel and the beneficiaries of the estate through their respective legal counsels and during this stage delays occurred in progressing the matter. In part, due to ongoing negotiations and communications with your sibling's legal counsel. | In August 20XX, your sibling signed a Deed disclaiming their interest in the property as at and from the date of the deceased's death. | In April 20XX, you were recorded on the title as the property owner. | While dealing with the administration of Parent A's estate, in late August of 20XX Parent B, was diagnosed with terminal illnesses. | The property was listed for sale in August 20XX. | A contract for the sale of the property was entered into in December 20XX and settlement was completed on March 20XX.