Private ruling: CGT- extension of time
Date of advice: 26 March 2026
Published: 18 May 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

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. In considering whether to extend the 2-year period, we took into account the fact that the ex-spouse had a right to reside in the property under the deceased's will. Accordingly, the capital gain (or loss) that the executor of the estate made from the CGT event that happened in relation to their ownership interest in the property is disregarded under subsection 118-195(1) of the ITAA 1997. Further information about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'.

Relevant facts and circumstances: Prior to 20 September 1985, the deceased purchased a property. The Property's land area is less than 2 hectares. The deceased occupied the property from purchase to the date they died as their principal place of residence, and the property was never income producing during the period of ownership. Until approximately 19YY, the ex-spouse lived in the property with the deceased. They divorced in 19YY, and the ex-spouse moved out. In 20YY, the ex-spouse returned to live in the property, the parties remained divorced, and the ex-spouse lived in a separate part of the property up to the deceased's passing and after. On DD MM 20YY, the deceased passed away leaving a Will. The Will provided for the ex-spouse, a right to reside in the Property for as long as they wished. The ex-spouse lived in the Property from 20YY until MM 20YY, and the property was not used to produce income during this period. The ex-spouse did not own any other properties during the time they resided in the Property. In MM 20YY, the ex-spouse moved out of the Property. The Property was unoccupied until the sale of the Property settled a few months after the ex-spouse moved out.

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