Private ruling: CGT - 2 year discretion
Date of advice: 6 November 2025
Published: 22 December 2025
Ruling period: Year ended 30 June 20YY
Date scheme commenced: DD MM 20YY

Ruling: Q1: Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 to extend the period to dispose of your ownership interest in the Property? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 66057' on ato.gov.au.

Relevant facts and circumstances: Person A passed away on DD MM 20YY. Person A's property at XXXXX (the "Property") was their principal place of residence and was not used to produce income before or after their death. The Property was purchased after 20 September 1985. Person A left a Will appointing the spouse, Person B, as Executor of the estate and sole beneficiary provided that they did not predecease them or that they failed to survive them by a period of 30 days.. In the event that the conditions in the Will were not met by Person B, Person A left their residuary estate upon trust to Person C, provided Person C did not predecease them - if this happened, then any surviving children of Person C would inherit Person C's share. Person B passed away on DD MM 20YY, shortly after but more than 30 days following Person A's passing. Person A's Will listed your firm, Firm A, as an alternative Executor of the estate, meaning that the Proprietor of Firm A, Person D, effectively became the Executor of the estate. Firm A published an advertisement with the probate office for Person A's estate on DD MM 20YY, and the probate application was filed five weeks later. On DD MM 20YY, the probate office refused the application for probate of Person A's estate. The probate office directed your firm to file a probate application for Person B's estate first, even though they passed away after Person A. You published an advertisement with the probate office for Person B's estate on DD MM 20YY and the probate application was lodged on DD MM 20YY. On DD MM 20YY, the Probation Office made a requisition for you to clarify the names of the members of your firm at the time that Person B's Will was executed. You supplied an affidavit to the probate office on DD MM 20YY, listing all members of your firm. The probate office was not satisfied with the listing and requested a list of all solicitors only. You supplied this list, and once the order for representation was granted, the Order for Grant of Representation was granted. Your firm published an advertisement for Person A's estate on DD MM 20YY. The probate application was filed in MM 20YY. You were issued a requisition on DD MM 20YY which was filed on DD MM 20YY. The order for grant of representation was granted on DD MM 20YY. The sole surviving beneficiary of the two estates confirmed that the Property needed to be sold. The transmission application was lodged and listed Person D as the sole proprietor of the Property in his capacity as Executor. Person D was dealing with health issues and passed away on DD MM 20YY, leaving the estates without an Executor. Your firm was then ordered by the Legal Services Board in the relevant State to cease operation until the board appointed a legal external manager - this caused significant delays. Your firm was appointed external managers and until probate was granted for Person Ds estate, the Property could not be sold. You published an advertisement for Person D's passing on DD MM 20YY and subsequently filed the probate application. The grant of representation was issued on DD MM 20YY, to Person D's Executors. A second transmission for the Property was lodged on DD MM 20YY, listing the Executors of Person D's estate as the proprietors on the title, in their capacity of being Executors. The contract of sale was then prepared and sent to the estate agent. The Property was listed for auction as soon as practically possible, and the contract of sale was signed on DD MM 20YY. The Property sold for $XXX and settlement occurred X weeks later on DD MM 20YY, being less than a year after the expiry of the 2-year period. Your firm is currently in the process of finalising the costs of both estates before the balance in trust can be paid out to the beneficiary. You provided the following documentation: 1. Relevant pages of the contract of sale of the Property 2. Death certificates for Person A and Person B 3. Grant of probate for the estate of Person B 4. Grant of probate for the estate of the Person A 5. First transmission application for the Property, listing Person D as the Executor 6. Death certificate of Person D 7. Grant of probate for the estate of Person D 8. Second transmission application for the Property 9. Settlement completion record of the Property

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1)