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Edited version of private advice
Authorisation Number: 1052478453055
Date of advice: 5 December 2025
Ruling
Subject: CGT - 2-year discretion
Question
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 a dwelling in Australia and disregard the capital gain or capital loss you made on the disposal?
Answer
Yes
This ruling applies for the following period:
XX XXXXX 20XX
The scheme commenced on:
XX XXXXX 20XX
Relevant facts and circumstances
The Deceased passed away on a date provided.
The Property was purchased pre-CGT.
The property is less than 2 hectares in size.
The property was the principal place of residence of the deceased at the time of death.
No income has been derived from the property after the passing of the deceased.
The property was left vacant after the deceased died and remained vacant until it was sold.
The sale of the property was due to sensitive circumstances around the executor having a family member with significant health issues. The property was sold a few months after the 2-year period.
On a date provided, a contract of sale was signed by the executor.
At a later date the property settlement occurred.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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