Private ruling: Main residence exemption
Date of advice: 17 September 2025
Published: 17 November 2025
Ruling period: Year ended DD/MM/20YY
Date scheme commenced: DD/MM/20YY

Ruling: Q1: Can you disregard any capital gain or loss on the disposal of your property? | A1: Yes The capital gain or loss on disposal of the Property will be disregarded pursuant to section 118-110. Subsection 118-115(1) of the ITAA 1997 defines 'dwelling' as it is used in the main residence exemption. It states a dwelling includes a unit of accommodation that is a caravan.

Relevant facts and circumstances: On DD/MM/20YY, you (Person A and Person B) jointly acquired a block of land at XXX (the property). For the full period of your ownership, you resided at the property in a caravan. You did not own or treat any other property as your main residence during this time. You had a shed on the property that was connected to electricity and mains water. You maintained a registered postal address and letterbox at the property and had all correspondence delivered there. You advised the state transport department of your new address and they subsequently updated your drivers' licenses to show this address. On DD/MM/20YY, you signed a contract of sale. On DD/MM/20YY, settlement occurred.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-115