Private ruling: CGT - deceased estate
Date of advice: 25 November 2025
Published: 12 January 2026
Ruling period: DD MM YY
Date scheme commenced: DD MM YY

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: On DD MM YY, the deceased signed a contract to purchase the property located at Address A. At the time, the property was being rented. Settlement occurred on DD MM YY. The property was rented from DD MM YY until DD MM YY (when the tenancy lease expired). On DD MM YY, the deceased returned to Address A from Address B and commenced living at the property with their de facto partner. On DD MM YY, the deceased went missing near Address B, and after extensive searches by the relevant authorities, the deceased's date of death was determined to be on or about DD MM YY. Due to the sensitive circumstances of the deceased's death, there were significant delays in the completion of the administration of the estate and subsequent sale of the property. The period between DD MM YY to DD MM YY was dedicated to: • Obtaining the deceased's Death Certificate. The Death Certificate was issued on DD MM YY. • Writing to the deceased's asset and liability holders in (in Australia and Country A), required in order to prepare application for a grant of administration. • Making enquiries regarding locating the deceased's will (in Australia and Country A). • Obtaining the deceased's parents' Marriage and Death Certificates, and acquiring translation from Language A to English • Obtaining and management of caveats for property preservation. On DD MM YY, the executor (Person A), with assistance of a lawyer lodged an application with the probate division of the Supreme Court for letters of administration. On DD MM YY, the Supreme Court requisitioned the application requiring appointment of Trustee under section 17A. On DD MM YY, after several months of working with the Public Trustee to draft the deed, negotiations with the lawyer fell over. On DD MM YY, a deed was entered into with the Private Trustee and a new lawyer and it was lodged with the probate division of the Supreme Court. On DD MM YY, the letters of administration were granted to Person A as executor. On DD MM YY, with the assistance of the executor's lawyer, the executor obtained property keys from the deceased's de facto partner. The executor commenced vacating the property of the deceased's possessions and prepared the property for listing. On DD MM YY, the executor met with realtors to obtain marketing proposals. On DD MM YY, the property was listed for sale. On DD MM YY, an offer to purchase the property was accepted, and the contract of sale was signed by the executor, Person A. On DD MM YY, the property settled. No other property the deceased held was being used as their main residence at the time they passed away.

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