Private ruling: Small business CGT concessions - extension of time
Date of advice: 31 October 2025
Published: 15 December 2025
Ruling period: Year Ending 30 June 20XX | Year Ending 30 June 20XX | Year Ending 30 June 20XX
Date scheme commenced: July 20XX

Ruling: Q1: Will the Commissioner exercise their discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to October 20XX for the Shares to be cancelled so the small business capital gains tax (CGT) concessions can be applied to the CGT event? | A1: Yes. Summary The Commissioner will exercise their discretion under subsection 152-80(3) of the ITAA 1997 to extend the period to October 20XX, allowing the Estate to access the small business CGT concessions for the Shares to be cancelled under the CGT event. The considered facts and circumstances are presented below: • the Shares are to be cancelled upon the Company's liquidation and the liquidation process could not commence until certain obligations undertaken by the Company, initially undertaken prior to the Deceased's passing, were fulfilled, and • the Deceased's legal personal representative (LPR), who is responsible for carrying out the activities of the Company after the Deceased's passing, was also required to tend to a dispute brought against the Estate by the Deceased's former partner. There are no factors that would suggest allowing further time would not be fair and reasonable. Therefore, the Commissioner will exercise the discretion.

Relevant facts and circumstances: The Deceased held shares in the Company. The Company is a building company, which builds residential properties. The residential properties are assets held by the Company, which are sold once completed. The Company was operated by the Deceased themselves. The Deceased passed away unexpectedly in October 20XX. The Company still held incomplete residential properties at the time of the Deceased's passing. The LPR maintained their own residential building business. Obtaining sufficient experience in the industry, the LPR was believed to have capacity to carry out the Company's required works on a timely basis. As such, they continued to carry out the required works. The building of the residential properties was completed approximately X months after the Deceased's passing. The sale of the final residential property is expected to be settled around December 20XX. The Company also held an additional property which was transferred in accordance with court orders. These orders were in relation a dispute brought against the Estate by the Deceased's former partner, with whom the Deceased had a child. The additional property was transferred in September 20XX. Upon the Company's court ordered property transfer, as well as the settlement of the final residential property sale, the LPR intends to liquidate the Company in a timely manner. After enquiries with a liquidator, it has been determined the liquidation process may span up to X months. Once the liquidation process is complete, the Shares will be cancelled. Due to the reasons above, the LPR has incurred significant delays in winding up the Estate, liquidating the Company and cancelling the Shares.

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