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

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

Relevant facts and circumstances: The deceased conducted a farming business on the property through a partnership. The deceased passed on XX XXX 20XX, and probate was granted on XX XXX 20XX. The executor is the partner of the deceased. The will stated that the executor was also the beneficiary of the farm property. The will was contested by the deceased's X children on XX XXX 20XX. Negotiations occurred for a considerable period and a resolution to these legal disputes was reached on XX XXX 20XX The executor will dispose of the property by XX XXX 20XX.

Relevant legislative provisions: 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 grant an extension of time for the sale the farming business property under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) until XX XXX 20XX. | 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. | 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. In these circumstances the CGT event, which is the sale of the property, has not occurred within the two years of the deceased's death. There were circumstances which were out of the executor's control which included legal disputes of contesting the will which in turn caused delay in the CGT event occurring. Having considered the circumstances, the Commissioner will grant an extension of time under subsection 152-80(3) ITAA 1997 until XX June 20XX.