Private ruling: Extension of time - small business concessions
Date of advice: 7 November 2025
Published: 5 January 2026
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner grant an extension of time for the sale of the property under section 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) until XX June 20XX? | A1: Yes.

Relevant facts and circumstances: The deceased owned a 50% interest in the farm property (the property). The deceased passed away in XXX 20XX. The deceased's spouse owned the other 50% of the property together. The property was used by the deceased's spouse to operate a farming business. The property had no dwelling and was only used to operate the farming business. The deceased changed their will on the XXX 20XX. The deceased had removed their spouse as the beneficiary of their share of the farm property in the new will. The new will stated that their share would go to their X children. The property became the subject of a legal dispute as there were issues regarding the deceased's cognitive capacity at the time of the change to the will Once the dispute was resolved the property was sold and settlement was on XX June 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-E | Income Tax Assessment Act 1997 section 152-80 | Income Tax Assessment Act 1997 subsection 152-80(3)

Reasons for decision: Summary: Yes, the Commissioner will exercise the discretion under section 152-80(3) ITAA 1997 to allow an extension of time for the farming property sale. | Detailed Reasoning - Detailed reasoning: Section 152-80 of the ITAA 1997 allows either the legal personal representative of an estate or the beneficiary to apply the CGT small business concessions in respect of the sale of the deceased's asset in certain circumstances. Under paragraph 152-80(1)(d) of the ITAA 1997, a CGT event must happen in relation to the CGT asset within two years of the individual's death. The Commissioner has the discretion to extend the time limit under subsection 152-80(3) of the ITAA 1997. Paragraph 152-80(3) of the ITAA 1997 states the Commissioner may extend the time limit in paragraph (1)(d). | Detailed Reasoning - Factors Commissioner considers whether to allow a longer period:: In determining whether to allow a longer period, the Commission will consider a range of factors such as: • whether there is evidence of an acceptable explanation for the period of extension requested and whether it would be fair and equitable in the circumstances to provide such an extension • whether there is any prejudice to the Commissioner if the additional time is allowed • whether there is any unsettling of people, other than the Commissioner, or of established practices • the need to ensure fairness to people in like positions and the wider public interest • whether there is any mischief involved • the consequences of the decision | Detailed Reasoning - Application to circumstances: Under paragraph 152-80(1)(d) of the ITAA 1997, a CGT event must happen in relation to the CGT asset within two years of the individual's death. The Commissioner has the discretion to extend the time limit under subsection 152-80(3) of the ITAA 1997. In these circumstances the CGT event, which is sale of both the property has not occurred within the two years of the deceased's death. During these two years there were circumstances which were out of the executor's control such as the unforeseen events that occurred including changes made to the will and the legal issues that arose from this involving the estate which in turn caused delay in the CGT event occurring. Having considered the circumstances, the Commissioner will grant an extension of time under paragraph 152-80(3) ITAA 1997 until XX June 20XX.