Private ruling: Main residence
Published: November 2013
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1:  | A1: 

Relevant facts and circumstances: You and your spouse have been saving money in savings accounts and also in First Home Saver Accounts (FHSA) lodged at a financial institution. You and your spouse purchased a property in the country with settlement occurring this year. You and your spouse plan to live in the property as your main residence (home). You and your spouse do not own any other properties. The financial institution is not convinced that you meet all the requirements to release the funds from the FHSA for the property as you and your spouse do not meet the requirements that it will be your 'home' due to the distance it is from your workplace. You and your spouse will be storing the majority of your personal possessions at the property. You have currently moved a lot of your belongings but not everything so far. You are currently employed by the large company in an Australian city. Your spouse is currently employed with a company in an Australian city. However, they spend a lot of time in other locations, such as interstate where they spent several months last year. You reside in a rented apartment in a suburb of an Australian city during your working week. Your spouse also resides in this apartment when they are working in this Australian city. During a normal week you spend: · more than 40 hours at your rented apartment · more than 10 hours in transit between your rented accommodation and your country property · more than 40 hours at work, and · more than 60 hours at the property. During a normal week your spouse spends: · more than 60 hours at your rented apartment · more than five hours in transit between your rented accommodation and the property · more than 50 hours at work, and · more 38 hours at the property. You and your spouse have/or in the process of having the property address on the following: · electricity and water · electoral role · driver's licence, · internet connected, and · your mail - you and your spouse have changed addresses with several organisations but have not finished the process as yet. You are a member of several sporting clubs located in the area near the property. Your spouse has recently applied to join a number of clubs located in the area near the property. You have provided the following documentation to support your application and this documentation is to be read with and forms part of your application for the purpose of this ruling: · a daily breakdown of hours spent by you and your spouse during a normal week at each location and in transit.

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

Reasons for decision: Summary: While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision. Whether a dwelling is considered a person's main residence is based on fact and is examined on a case by case basis. Some of the factors we consider when determining if a dwelling is a person's main residence as follows: · the length of time an individual has lived in the dwelling · where an individual's employment is located · the place of residence of the individual's family · whether the individual has moved his or her personal belongings into the dwelling · the address to which the individual has his or her mail delivered · the individual's address on the electoral roll · the connection of services, such as telephone, gas and electricity, and · the individual's intention in occupying the dwelling. Upon settlement of the purchase of the property you and spouse moved some of your personal belongings into the dwelling and had essential services connected and are in the process of changing the address of others. From the information you have provided you and your spouse's employment are both located in an Australian city where you reside in rental accommodation in a suburb of this city. You spend during a normal week more than 90 hours in this Australian city comprising of: · rented apartment - more than 40 hours, and · work - more than 40 hours. Your spouse spends during a normal week more than 110 hours in an Australian city comprising of: · rented apartment - more than 60 hours, and · work - more than 50 hours. Taking into account all the information you have provided such as you and your spouse changing your address on your licences, electoral role and moving personal belongs to the property, you and your spouse's employment is based in an Australian city and you both spend more than 50% of your normal week in this city. Taking into consideration all of the above we consider that your apartment in the Australian city to be your main residence as the majority of your week is spent in this city as this is where you and your spouse are employed. Therefore, we do not consider the property to be your main residence.

Subject: Main residence: Question : Is your property in the country considered to be your main residence?