Private ruling: Commissioner's discretion - deceased estate
Date of advice: 10 April 2026
Published: 15 June 2026
Ruling period: Year ended 30 June 20YY
Date scheme commenced: DD MM 20YY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or capital loss you made 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 Commissioner's discretion can be found by searching ato.gov.au for QC 66057.

Relevant facts and circumstances: The deceased passed away on or about DD MM 20YY. The dwelling is located at the property. The deceased acquired the property after 20 September 1985. The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time. The property was situated on less than two hectares of land. The deceased passed away intestate. On DD MM 20YY, you were notified of the passing of the deceased by the relevant authorities. You located potential next of kin via the Electoral Role records and contacted them via letter. On DD MM 20YY, the next of kin verbally requested you continue to administer the estate. There was a delay in obtaining Letters of Administration for the estate as you were unaware of the exact date of death. Further information had to be obtained from the Coroner's Office as well as phone records to verify the correct date. On DD MM 20YY, you sought a signed affidavit from the Coroners Court to complete your application to the Probate Registry for letters of administration. On DD MM 20YY, you lodged the original application for Letters of Administration. On DD MM 20YY, the Probate Registry responded to your application seeking clarification about the date the deceased was last seen alive. The Probate Registry also advised that they would be unable to grant the application until the final death certificate was issued and requested a copy of the autopsy report. You responded on the same day to clarify the issue of the last seen alive date. On DD MM 20YY, the Probate Registry sought further information. On DD MM 20YY, you wrote to a phone company to seek phone call records to confirm the date of death. The phone company never assisted in providing these records. On DD MM 20YY, you wrote to the Coroners Court to seek confirmation of when the final death certificate would be issued. The Coroners Court advised their report regarding the cause and date of death would be finalised in MM 20YY. In MM 20YY, you received the death certificate. On DD MM 20YY, a public health emergency in relation to the transmission of COVID-19 was declared. On DD MM 20YY, you received the autopsy report and resubmitted your application to the Probate Registry. On DD MM 20YY the Letters of Administration were granted. From MM 20YY - MM 20YY, multiple COVID-19 restriction directives were published of varying degrees of severity, impacting the number of people who could attend the property. From MM 20YY - MM 20YY you completed the following: • Actioning collection of other estate assets including motor vehicles, bank accounts, superannuation accounts, shares and investment accounts. • Completed the transmission application. • Instructed real estate agency to provide market appraisal and complete required works before sale (removal of hard rubbish, repair of door frame, and thorough clean of all surfaces). Additional time was required to clear out the property and have it suitable for sale. This was due to the COVID-19 pandemic whereby restrictions were in place regarding lockdowns and the number of people who could enter buildings. In MM 20YY the property was placed on the market. In MM 20YY, the presale works were completed. You entered into a contract to sell the property on DD MM 20YY with settlement occurring on DD MM 20YY.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195