Private ruling: Capital gains tax
Date of advice: 7 September 2021
Published: November 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q2: Will the Country X property be deemed to have been acquired for its market value by you on XXX 20XX? Answer Yes. Subsection 768-955(2) of the Income Tax Assessment Act 1997 applies to deem the first element of the cost base and reduced cost base of the Country X property to be the property's market value on XXX 20XX.

Relevant facts and circumstances: You were married at the time the below events took place. You were a non-resident at all times prior to first arriving in Australia. You along with your spouse entered into a contract to purchase an off-the-plan foreign property a number of years ago. The building was completed in or about the 20XX income year and settlement occurred shortly thereafter. You applied for a temporary resident visa to travel to Australia. The visa was granted in the 20XX income year. You travelled to Australia and arrived in the 20XX income year. You travelled with your spouse with your belongings to Australia with the intention to reside in Australia indefinitely, therefore becoming Australian tax resident from your date of arrival. Upon arrival in Australia, you rented a property for several months prior to purchasing your main residence. You were granted permanent residency on in the 20XX income year. The overseas property was sold during the year ended 30 June 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 768-955(3) | Income Tax Assessment Act 1997 subsection 768-955(2)


Question 1: Will the time of acquisition of the Country X property by you be deemed to be XXX 20XX? | Yes. Subsection 768-955(3) of the Income Tax Assessment Act 1997 applies to deem the acquisition date of the Country X property as XXX 20XX. | This ruling applies for the following period :