Private ruling: CGT - Deceased estates - small business concession - 2-year discretion
Date of advice: 9 October 2025
Published: 24 November 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the 2-year time period to a specified date in relation to a specified percentage interest in the property that the legal personal representative acquired on a specified date? | A1: Yes, having considered all relevant factors, the Commissioner will exercise discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 to extend the time limit for disposal of the Real Property to a specified date.

Relevant facts and circumstances: Background Person A passed away on a specified date, having held a specified percentage interest in a farming property located at a specified address, as tenants in common with Person B. Throughout Person A's ownership, the property was used by Person A and their spouse, Person C, for agricultural farming activities. These operations were conducted through a partnership between Person A and Person C. Following Person A's death, the partnership continued between Person C and the Estate of Person A. The property has remained an active asset and farming has continued while the property has been listed for sale. Proposed sale of the property You have advised that since listing the property, the real estate agent has reported: • A specified number of enquiries and/or inspections • Several offers received, though only a few progressed to the contract stage, none of which were executed due to prospective buyers withdrawing prior to signing. The property remains on the market, with all reasonable offers being considered. The trustee is currently negotiating a new offer, and legal advisors are in the process of finalising the contract details. It is anticipated that the terms will be agreed upon and the contract signed soon. You have provided copies of all the draft contracts, which indicate that the price has been reduced in the latest offer. The trustee is therefore seeking an extension of time at least until a specified date. Title remains with the trustee of the deceased estate. You contend that the asset would have qualified for the small business CGT concession had the deceased disposed of it immediately prior to death. The property was an active asset throughout the entire period of ownership, and the 15-year exemption would have been available to the deceased. The deceased was aged more than 55 years at the date of their death.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 152-40(1) | Income Tax Assessment Act 1997 paragraph 152-40(4)(e) | Income Tax Assessment Act 1997 section 152-80 | Income Tax Assessment Act 1997 paragraph 152-80(1)(d) | Income Tax Assessment Act 1997 subsection 152-80(3)