Private ruling: CGT - life events test
Date of advice: 7 February 2025
Published: 24 March 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Taxpayer satisfy the life events test, at the time they dispose of the property under section 118-110 of the Income tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The Taxpayer will satisfy the life events test at the time of the CGT event as they have been a resident of Australia for tax purposes within the previous six years. Furthermore, the CGT event will occur as they will have obtained a court order under the Family Law Act 1975 prior to the property being disposed of. Consequently, they will not be denied the main residence exemption due to being a foreign resident at the time of the CGT event.

Relevant facts and circumstances: The Taxpayer is an Australian citizen. The Taxpayer is currently a non-resident of Australia for tax purposes. The property is jointly owned by the Taxpayer and their spouse. The Taxpayer is the process of divorcing their spouse. The Taxpayer wants to sell the property and divide the proceeds between themselves and their spouse. The Taxpayer plans to dispose of the property during the next financial year. The Taxpayer plans to get a court order before the property is disposed of. The property was the main residence, in which they resided, from 20XX to 20XX. In 20XX the Taxpayer left Australia, and the property was rented out. The Taxpayer returned to Australia in 20XX and lived in the property until 20XX when they moved overseas. The property has been rented out since 20XX. The Taxpayer continues to treat the property as their main residence for CGT purposes. The Taxpayer currently resides overseas.

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