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1 Is the entirety of the Property a 'dwelling' per the definition in section 118-115 of the Income Tax Assessment Act 1997 (ITAA 1997)? a)            That is, the existence of the development approval for the lot does not change the character of the existing lot, and b)            That is, the adjacent land, together with the land under the dwelling, up to 2 hectares limit, forms part of the dwelling under section 118-120 of the ITAA97.

1 Yes. Question 2 If the Answer to Question 1 is Yes, is the total cost base of all the lots equal to the market value of the Property at the Deceased's date of death under Item 3 of subsection 128-15(4) of the ITAA 1997? Answer 2 Yes. Question 3 If the Answer to Question 1 and 2 is Yes, will the cost base of the subdivided lots, after completion of the subdivision works, be apportioned based on the relative market value of the lots? Answer 3 Yes. Question 4 Will the proceeds from the disposal of the subdivided blocks be assessable income according to ordinary concepts under section 6-5 of the ITAA 1997? Answer 4 No. Question 5 If the answer to question 4 is No, will the proceeds from the sale of the subdivided blocks of land be from carrying on a business and assessable as ordinary income with the blocks of land being considered as trading stock under section 70-30 of the ITAA 1997? Answer 5 No. Question 6 If the answer to questions 4 and 5 is No, will the proceeds from the disposal of the subdivided blocks be subject to the capital gains tax (CGT) provisions in Parts 3-1 and 3-3 of the ITAA 1997? Answer 6 Yes. Question 7

a)            If the answer to question 6 is Yes, can the Taxpayer use the discount method in Division 115 of the ITAA 1997 to calculate the capital gain in relation to the disposal of the interests in the subdivided blocks, if they are sold more than 12 months from the deemed acquisition date per section 115-30 of the ITAA 1997? b)            For the purposes of Division 115 of the ITAA 1997, is the deemed acquisition date of the Property the Deceased's acquisition date in accordance with Item 3 of subsection 115-30(1) of the ITAA 1997? Answer 7 a)            Yes. b)            Yes. Issue 2 - Goods and Services Tax (GST) Question 1 Will the sales of the proposed subdivided vacant lots located at the Property be a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? Answer 1 No. Question 2 If the sales of the proposed subdivided vacant lots are taxable supplies, will the consideration from the disposal of the subdivided lots be excluded from the Taxpayer's projected GST turnover under section 188-25 of the GST Act on the basis that it is a capital asset? Answer 2 Not applicable. Question 3

If the sales of the proposed subdivided vacant lots are taxable supplies, will the Taxpayer be eligible to apply the margin scheme to calculate GST on the sale of the subdivided lots under section 75-5 of the GST Act? Answer 3 Not applicable. Question 4 Is the Taxpayer required to register for GST 12 months prior to the settlement date of the sale of the subdivided vacant lots? Answer 4 No. This ruling applies for the following periods : Year ended 30 June 20XX Year ended 30 June 20XY Year ended 30 June 20XZ The scheme commenced on: DDMM 20XT

The Taxpayer received Private ruling Authorisation number XXXXXXXXXXXXX on DDMM 20XX, which applied for the years 30 June 20XU, 20XV, and 20XW. There has been a delay in the sale of the assets described in that private ruling. The relevant facts of the arrangement remain the same. The Taxpayer has requested that the Commissioner extend the period of the Private ruling.

Income Tax Assessment Act 1997 section 6-5 Income Tax Assessment Act 1997 section 70-30 Income Tax Assessment Act 1997 section 104-10 Income Tax Assessment Act 1997 section 115-30 Income Tax Assessment Act 1997 section 118-115 Income Tax Assessment Act 1997 section 118-120 Income Tax Assessment Act 1997 section 128-15