Private ruling: Commissioner's discretion - deceased estate
Date of advice: 6 November 2025
Published: 22 December 2025
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'. This private ruling applies for the following period Year ending 30 June 20XX The scheme commenced on: DD MM YY


Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195 Note: | Land adjacent to a dwelling may also qualify for the main residence exemption if it and the dwelling are sold together and both of the following apply: | • during the period you owned it, you used the land mainly for private and domestic purposes in association with the dwelling, and | • the total area of the adjacent land and the land on which the dwelling stands is not more than two hectares (4.94 acres). | If the adjacent land is used for private purposes and is greater than two hectares, you can choose which two hectares are exempt. The remainder is subject to CGT. | If any part of the land around a dwelling is used to produce income, it is not exempt, even if the total land area is less than two hectares.


Relevant facts: The deceased passed away on DD MM YY. | The deceased owned a dwelling. (The dwelling). | The dwelling was acquired in 19YY. | The land size is greater than two hectares. | The deceased was survived by a number of beneficiaries. | Beneficiary A is a relative of the deceased. Beneficiary A advised that the deceased had prepared a codicil in 20YY varying the original will of 20YY. A dispute arose in relation to the validity of the codicil and caused delays in administering the estate. The dispute was unable to be resolved. | Beneficiary A commenced legal proceedings on DD MM YY propounding the codicil dated DD MM YY. | A final hearing to approve the settlement of the dispute was held on DD MM YY. | On DD MM YY a grant to administer the Estate was issued. | On DD MM YY instructions were sent to the beneficiaries seeking instructions on whether the dwelling was to be sold or transferred. | The deceased had accumulated a significant amount of personal possessions and these needed to be examined by Beneficiary A prior to sale. This caused some delays as keys to the dwelling needed to be sent by post. | On DD MM YY a local real estate was instructed to view the dwelling and provide advice on whether the dwelling could be sold in an as is condition. | On DD MM YY an electrician was required to attend the dwelling to obtain a smoke alarm compliance certificate which is a condition of selling a property. The electrician picked up the keys on DD MM YY. The electrician had to travel a significant distance to complete the work. This was done on the DD MM YY. The compliance certificate issued on the DD MM YY. The Electrician advised that they had difficulty accessing the dwelling due to the volume of personal possessions. | On DD MM YY formal instructions to sell the dwelling were received from the beneficiaries. | On DD MM YY marketing appraisals were received from the real estate agent. | Discussions were undertaken with the beneficiaries in relation to listing price which were ongoing between MM and MM YY. | On DD MM YY the dwelling was listed for sale. | On DD MM YY X offers were received to purchase the dwelling. | On DD MM YY a contract for sale was signed. | On DD MM YY Settlement took place.