Private ruling: Capital gains tax
Date of advice: 8 August 2025
Published: 27 October 2025
Ruling period: Year ended 30 June 2025
Date scheme commenced: 1 July 2024

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 to dispose of the ownership interest in the property and disregard the capital gain made on the disposal? | A1: 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 deceased lived in the property as their main residence for the whole of their ownership period. The deceased had an ownership interest in the property. The remaining percentage was owned by Individual Z, as co-owner who did not reside at the property. The property was never used to produce assessable income before or after the deceased passed away. The property was less than 2 hectares in size. The delay in selling the property within the legislated 2-year time was due to ongoing and complicated sensitive issues. In YYYY legal advice was sought. In MM YYYY probate was granted. A contract for sale was signed DD MM YYYY. The property was settled on DD MM YYYY.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-195