Private ruling: CGT - deceased estate
Date of advice: 17 October 2025
Published: 1 December 2025
Ruling period: 20XX-XX Income year
Date scheme commenced: XX XXX 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'

Relevant facts and circumstances: Person A (The deceased) passed away on XX XXX 20XX. The deceased's main residence situated at Address A. Person A had 100% ownership in the property at the time of death. The property was originally acquired by Person A and Person B and the land size of the property was less than two hectares. The beneficiary and executor of the estate is Person B. Title of the property was transferred to you on 21 April 20XX The beneficiary was not able to take possession of the property until around XX XXX 20XX due to the deceased had taken out a loan against the property. The loan was secured by paying CBA a sum of $X. The beneficiary also had a pending AFCA case against CBA in relation to the loan for breach of fair lending practices which settled on XX XXX 20XX. The property required extensive renovations such as: • Pool fencing to make pool able to gain pool safety inspection certificate. • Fire alarms need to be installed again so the property could obtain certification • Extensive repairs to walls, ceilings, floors and roof that were asbestos and made the property unsafe to be sold in that condition. All these repairs required money which you did not possess due to having to pay out the loan to the CBA that Person A took out. Person B was diagnosed with cancer on XX XXX 20XX. As the public hospital system was unable to accommodate the surgery in a timely manner Person therefore went to a private hospital, depleting their savings even further. You underwent surgery on XX XXX 20XX. The recovery period from the surgery took 15 weeks due to complications. Person C then underwent surgery on the XX XXX 20XX and you were their carer for X weeks while they recovered from that operation. Due to the limited availability of tradespeople and the need to rebuild sufficient savings to cover the cost of labour and materials, Person B and Person C were unable to arrange for the necessary work on the property until XXX 20XX. The electrician was engaged at the end of XXX 20XX and it took until mid-XXX 20XX to complete the work making the property safe and bringing it up to code. The pool fencing works started at the end of XXX 20XX and was completed by end of XXX 20XX. Property was assessed by an Asbestos expert at end of XXX 20XX advising the type of Asbestos and the dangers which needed to be addressed. Asbestos work indoors (floors, walls) started at the end of XXX 20XX due to limited finance available and completed at the end of XXX 20XX. Asbestos roof repairs started early XXX 20XX and completed end of XXX 20XX. Near the end of XXX 20XX property ready for sale this include removal/sale of furniture goods etc removal and disposal of all rubbish and a general clean and tidy of the house and grounds. Final renovations were to install and obtain certification of Fire alarms and pool safety certificate building and pest inspections. Person B engaged the real estate in early XXX 20XX to discuss sale of property. The contract date of sale was XX XXX 20X and the property settled on XX XXX 20XX.

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