Edited version of private advice

Authorisation Number: 1052475384380

Date of advice: 20 November 2025

Ruling

Subject: Capital gains tax - deceased estate

Question

Will the Commissioner exercise discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period?

Answer

Yes.

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'

This ruling applies for the following period:

Year ended DD MM 20YY

The scheme commenced on:

DD MM 20YY

Relevant facts and circumstances

The deceased passed away on DD MM 20YY.

The dwelling is located at XX (the property).

The property was built in 19YY as their principal and only residence and was continuously occupied by them until their deaths.

The deceased acquired their interest before 20 September 1985.

The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time.

The property was situated on less than two hectares of land.

The deceased had a Will which was dated DD MM 20YY.

The Will included a clause leaving a lifetime right to reside in the property for one of the beneficiaries as long as they wish; provided they maintained the property and paid all of the relevant levies, taxes and premiums on any insurance policies.

Probate of the Will (copy annexed) was granted on DD MM 20YY.

The property was listed for sale on DD MM 20YY with settlement occurring on DD MM 20YY.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195