Private ruling: Commissioner's discretion - deceased estate
Date of advice: 10 February 2026
Published: 30 March 2026
Date scheme commenced: 1 July 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. This private ruling applies for the following period Year ending 30 June 20xx The scheme commenced on: 1 July 20xx


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


Relevant facts: The deceased passed away on XX XX 20XX. | The deceased owned a dwelling (the dwelling). | The dwelling was the deceased's main residence. | The dwelling was occupied by person A who is a relative of the deceased prior to their passing and after their death. | The dwelling was not used to produce assessable income. | The land size is less than 2 hectares. | The deceased passed away without leaving a Will. | A dispute arose between the beneficiaries of the deceased. | The deceased was in a long-term relationship with person B. | The deceased was also survived by their child, person C. | The deceased had been estranged from person C for approximately X years and as a result lengthy delays were experienced in locating person C. | Person B applied for Letters of Administration on XX XX 20XX. | Lengthy delays were experienced as a result of the Court requesting additional information in relation to the deceased. | Person B engaged a genealogical company to attempt to locate person C. Delays were experienced in this process. Person C was located on XX XX 20XX. | Person C lodged a caveat on XX XX 20XX against the Letters of Administration proceeding. | On XX XX 20XX mediation was undertaken and this was successful, with the Caveat removed on XX XX 20XX. | This caused further delays and on XX XX 20XX a Grant of Letters of Administration was issued. | On XX XX 20XX person A indicated that they were going to commence proceedings in relation to a claim on the estate. | On XX XX 20XX person A commenced legal proceedings. | On XX XX 20XX mediation was undertaken which was resolved with the terms of settlement being executed between the parties. | Person A vacated the dwelling, and person B prepared the dwelling for sale. | The dwelling was sold at auction on XX XX 20XX and settlement occurred on XX XX 20XX.