Private ruling: Capital gains tax - deceased estate
Date of advice: 22 July 2025
Published: 15 September 2025
Ruling period: Year ending 30 June 20YY
Date scheme commenced: DDMM20YY

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195 (1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of the two-year period to dispose of the dwelling? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time to dispose of the dwelling.

Relevant facts and circumstances: The deceased owned a property at XXXX (the property). The property was acquired by the deceased on DDMM20YY. The property is less than 2 hectares. The dwelling was the main residence of the deceased just before the deceased's death. The deceased's child lived at the property with the deceased. The property was not used for the purpose of producing assessable income at the time of the deceased's death. The deceased died in MM20YY. The state trustee and guardian (STG) is executor of the deceased's will. The estate was referred to the STG's legal department in MM20YY. Probate was granted in MM20YY. The deceased's will states the estate was to be divided equally between the deceased's children. The deceased's child continued to live at the property after the deceased's date of death, however they did not have a right to occupy the property under the deceased's will. The delay in settlement of the sale of the property was caused by circumstances beyond your control as follows: • the estate was not reported to the STG until XX months after the deceased's date of death and, • after numerous attempts, a forced eviction was referred to the STG's legal department in MM20YY and finalised in ten months later in 20YY. Clearing and cleaning of the property was completed by STG in MM20YY. The property was listed for sale in MM20YY by the STG, and settlement occurred five months later in 20YY. The property was listed for sale as soon as practically possible. The sale of the property was reasonably managed since having access to the property in MM20YY. The estate has not been fully administered to date.

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