Private ruling: Capital gains tax
Date of advice: 22 January 2021
Published: March 2021
Ruling period: Year ended 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Are you entitled to use the CGT main residence exemption absence rule in section 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. In your case the property was purchased prior to 9 May 2017 and nominated the property as your main residence for the CGT Main Residence exemption. Application of Main Residence exemption will only be able to be claimed for a disposal that occurs up until 30 June 2020. Further information on capital gains tax changes for foreign investors can be found by searching 'QC 52005' on ato.gov.au.

Relevant facts and circumstances: You purchased the property in XXXX and it was your main residence. You left Australian and ceased being an Australian resident for taxation purposesinXXXX . The property was rented to tenants through a real estate agency. The property was tenanted until XXXX. You then sold the property with settlement in XXXX. You paid foreign resident capital gains withholding tax on the disposal of the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-145 | Income Tax Assessment Act 1997 section 118-170 | Income Tax Assessment Act 1997 section 118-185 | Income Tax Assessment Act 1997 section 118-190