Private ruling: Commissioner's discretion to extend the two year period to dispose of a dwelling acquired from a deceased estate.
Date of advice: 12 November 2025
Published: 5 January 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: DDMMYY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of ITAA 1997 to allow an extension of time to for you to dispose of your ownership interest in the dwelling and disregard the capital gain 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: Person A acquired a property in Australia (The Property) Person A lived in the dwelling on the Property as their main residence (The Dwelling). On DDMMYY Person A passed away (The Deceased). The Deceased had X children, Child A, Child B and Child C. Child A and Child C were the primary carers for the Deceased. Child C and their child (Grandchild A) lived in the dwelling with the Deceased. They moved in after Child C separated from their spouse, living there from the time Grandchild A was a toddler, except for a period of X years. Child C and Grandchild A continued to live in the dwelling as their main residence after the Deceased's death. Child A and Child C were also the Executors of the Deceased's Estate (The Executors). The Property was left to the Deceased's three children: • Child A - X% • Child B - X%, and • Child C - X%. Child A and Child B experienced a medical episode after the Deceased's death. Child A and their then partner also experienced a medical issue which then led to the breakdown of their relationship. Child A had ongoing counselling via his employer's X program. In MMYY, Child C was then diagnosed with a terminal illness. Child A was their carer. On DDMMYY probate was granted for the Deceased's Estate. On DDMMYY Child C passed away. On DDMMYY probate was granted for the Estate of Child C. Child A was the sole executor of Child C's Estate. Child C left their X% share of the Property to Grandchild A with Child B already gifting their X% share to Grandchild A before Child C's death. Grandchild A continued to live in the Dwelling after Child C's death. On DDMMYY paperwork for the settlement of the Property was drawn up by the lawyers, who were awaiting Grandchild A to provide identification documents. Grandchild A did not provide the documents as they were suffering from mental health issues. Child A and the lawyers made numerous attempts to get the documents from Grandchild A. On DDMMYY Grandchild A provided the documents so that the settlement paperwork could be prepared. In MMYY Grandchild A abandoned the Property in an uninhabitable state, with strangers living in the Dwelling. No lease agreement was in place. You did not complete any major renovation prior to placing the Property on the market. In MMYY Child A engaged Real Estate Agent to sell the Property. In MMYY the contract of sale was executed, with settlement occurring more than two years after the Deceased's death.

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