Private ruling: Commissioner's discretion - deceased estate
Date of advice: 19 February 2026
Published: 7 April 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 a acquired the dwelling. (The dwelling) | The executor of the deceased estate was a professional organisation. (Organisation 'A') | This property was the main residence from the date of construction until their passing. | The property is less than 2 hectares. | The property was empty throughout this entire period and did not earn any rental income or was used by anyone. | Person A is the main beneficiary under the Will of the deceased. | Person A is a permanent resident of another country. | Organisation 'A' took over x years to administer the estate due to a number of delays. | Organisation 'A' advised that Foreign Investment Review Board was required for the sale of the dwelling. This advice was incorrect and caused significant delays. | The deceased had assets in Australia and overseas which required administration in both countries, and this caused some delays. | Person A engaged legal representation around XX 20XX to try and finalise the estate and taxes for the deceased estate. | There were ongoing discussions between lawyers representing Person A and Organisation 'A' in relation to the administration of the estate and in particular the inaction of Organisation 'A' and delay in administering the estate. This caused significant delays. | On XX XX 20XX person A was informed that Organisation 'A' had transferred the dwelling into their name. | Person A undertook the necessary steps to prepare and list the dwelling for sale. | The property was listed on for sale in early XX 20XX and sold at auction on XX XX 20XX. | The settlement for the sale occurred on XX XX 20XX.