Private ruling: Commissioner's discretion
Date of advice: 20 October 2025
Published: 8 December 2025
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of the 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' . This private ruling applies for the following period Year ending 30 June 20XX The scheme commenced on: 1 July 20XX


Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195 Note: | Land adjacent to a dwelling may also qualify for the main residence exemption if it and the dwelling are sold together and both of the following apply: | • during the period you owned it, you used the land mainly for private and domestic purposes in association with the dwelling, and | • the total area of the adjacent land and the land on which the dwelling stands is not more than two hectares (4.94 acres). | If the adjacent land is used for private purposes and is greater than two hectares, you can choose which two hectares are exempt. The remainder is subject to CGT. | If any part of the land around a dwelling is used to produce income, it is not exempt, even if the total land area is less than two hectares.


Relevant facts: The deceased passed away on XX XX 20XX. | The deceased owned a dwelling. (The dwelling). | The dwelling was acquired on XX XX 19XX. | The land size is greater than 2 hectares. | The deceased was survived by X children. Child A and child B. | A dispute arose around XX 20XX between child A and child B soon after the passing of the deceased and each retained legal representatives. | On XX XX 20XX child B commenced a Testator's family maintenance proceedings by way of Summons in the Supreme Court of the relevant state. | Mediation between the parties was ongoing and a settlement of the dispute was reached on XX XX 20XX. | Consent orders were made by the Court on XX XX 20XX. | Child B had a right to reside in the dwelling which ended as a result of the settlement of the court proceedings. Child B moved out of the dwelling shortly afterwards. | On XX XX 20XX a real estate agent was appointed to sell the dwelling. | Extensive cleanup of the property was undertaken by contractors which caused some delays. | A contract for the sale was entered into on XX XX 20XX. | Settlement took place on XX XX 20XX.