Private ruling: CGT - deceased estates
Date of advice: 20 November 2025
Published: 5 January 2026
Ruling period: Year ended 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 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 deceased was not discovered until DD MM 20YY. The deceased died intestate. The deceased was single with no children and no living parents at the time of their death. The deceased purchased a property at XX XX XXX on DD MM 19YY. The dwelling was their main residence and never used to produce income. The property remained unoccupied from the deceased's death until its sale. The deceased was the half sibling of the second deceased but they had been unaware of each other's existence for almost all their lives. As a sibling of the deceased, the second deceased had the highest priority to apply for Letters of Administration for the deceased's estate. The second deceased was not aware at the time of the deceased's death of their entitlement to apply for Letters of Administration as they had no relationship with the deceased. The second deceased died on DD MM 20YY without making an application for a grant for their sibling's estate. They were XX years of age at the time of their death. The second deceased's child was granted probate of their estate on DD MM 20YY. Before they could apply for Letters of Administration for the deceased's estate, they first had to apply for probate for the second deceased's estate. Under the chain of executorship, as a child and executor of their parent's estate, they engaged the Public Trustee who confirmed the deceased did not leave a will and that they were eligible to apply for Letters of Administration for the deceased's estate. They were granted Letters of Administration for the deceased's estate by the Supreme Court of XX XX on DD MM 20YY. The title to the property was transferred to the Administrator for the deceased's estate. The property was in a state of disrepair when sold. The property was listed for sale on DD MM 20YY and sold on DD MM 20YY with settlement taking place on DD MM 20YY.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 section 128-15