Private ruling: CGT - small business concessions
Date of advice: 21 October 2025
Published: 8 December 2025
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner grant an extension of time for the sale of the farm W under paragraph 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) until January 20XX? | A1: Yes | Q2: Will the Commissioner grant an extension of time for the sale of the farm F property underparagraph 152-80(3) of theITAA 1997until October 20XX ? | A2: Yes This private ruling applies for the following periods: Year ending 30 June 20XX Year ending 30 June 20XX The scheme commenced on: 1 July 20XX

Relevant facts and circumstances: The deceased passed away on October 20XX. The deceased was conducting a farming business on two farming properties, farm W and farm F. The deceased held a 100% ownership interest in both of the farming properties. The executor was also a child of the deceased and a beneficiary. The executor administered the estate and continued the farming business The executor is the only beneficiary that worked on the farm with the deceased. Farm W On the September 20XX the executor received a valuation for the farm W from licensed valuer. The executor made an offer to the other beneficiaries on approximately May 20XX of $X. Two beneficiaries seemed to be in agreeance, but one beneficiary was not. A beneficiary found a calculation mistake which resulted in the valuation being amended to $X. The executor also acquired a real estate appraisal of $X on July 20XX for farm W from a real estate company. The executor offered to pay additional $X, however the beneficiary decided to obtain a further valuation at their own expense. In July 20XX, the beneficiary received a valuation from another property valuer for $X. The executor sent this valuation of $X the valuer who conducted the initial valuation of the farm W property. The valuer provide mapping demonstrating that the valuation was incorrect. Two beneficiaries agreed to an offer for the purchase of farm W, however one did not respond. The dispute between the beneficiaries is ongoing. The executor will conduct this sale as a silent auction. Farm W will be sold via silent auction by XX January 20XX. Farm F Farm F was put on the market October 20XX for $X. One offer of $X had been received; however the buyer withdrew their offer when another, larger property became available for sale. The executor dropped the price of farm F to $X approximately X months ago. No further offers have been received. The executor will reduce the price further to assist in selling the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-80 | Income Tax Assessment Act 1997 paragraph 152-80(3) | Income Tax Assessment Act 1997 Subdivision 152-E

Reasons for decision: Summary: Section 152-80 of the ITAA 1997 allows either the legal personal representative of an estate or the beneficiary to apply the CGT small business concessions in respect of the sale of the deceased's asset in certain circumstances. Under paragraph 152-80(1)(d) of the ITAA 1997, a CGT event must happen in relation to the CGT asset within two years of the individual's death. The Commissioner has the discretion to extend the time limit under subsection 152-80(3) of the ITAA 1997. Paragraph 152-80(3) of the ITAA 1997 states the Commissioner may extend the time limit in paragraph (1)(d). Factors Commissioner considers whether to allow a longer period: In determining whether to allow a longer period, the Commission will consider a range of factors such as: • whether there is evidence of an acceptable explanation for the period of extension requested and whether it would be fair and equitable in the circumstances to provide such an extension • whether there is any prejudice to the Commissioner if the additional time is allowed • whether there is any unsettling of people, other than the Commissioner, or of established practices • the need to ensure fairness to people in like positions and the wider public interest • whether there is any mischief involved • the consequences of the decision | Detailed Reasoning - Application to circumstances: Under paragraph 152-80(1)(d) of the ITAA 1997, a CGT event must happen in relation to the CGT asset within two years of the individual's death. The Commissioner has the discretion to extend the time limit under subsection 152-80(3) of the ITAA 1997. Given there were circumstances beyond the executor's control that impeded the sale of both properties within the two years and an extension of time can be granted as per paragraph 152-80(3) of the ITAA 1997 stating the Commissioner may extend the time limit in paragraph (1)(d). Having considered the circumstances, the Commissioner will grant an extension of time under paragraph 152-80(3) ITAA 1997 until January 20XX for the W property and until October 20XX for the F property to be sold.