Private ruling: Deceased estate 2-year discretion
Date of advice: 1 December 2025
Published: 27 January 2026
Ruling period: Year ended 30 June 20YY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of Income Tax Assessment Act 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: The deceased passed away on DD MM YYYY. The property was the deceased's main residence. The property is less than 2 hectares. The deceased's spouse acquired ownership of the property pre-CGT. The deceased and their spouse were registered as Joint Proprietors of the property at a later date, which was also pre-CGT. The deceased acquired sole ownership of the property upon the death of their spouse via a Survivorship Application, post CGT. The property was not used to produce assessable income. No renovations or repairs were carried out post death. Probate was granted. The decease left a will. You provided a copy of the will. The will had a clause that allowed a lifetime right to occupy the property to the beneficiaries. A beneficiary resided in the property. The beneficiary moved out of the property. The property was placed on the market. Settlement took place.

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