Private ruling: Temporary residents - capital gains tax - sale of overseas property
Date of advice: 9 January 2020
Published: March 2020
Ruling period: Year ended 20xx
Date scheme commenced: 1 July 20xx

Ruling: Q1: Can you disregard the capital gain you made on the disposal of your overseas property as temporary residents of Australia at the time of the CGT event? | A1: Yes. You do not pay tax on a capital gain in Australia on the sale of your overseas property as you were temporary residents of Australia at the time of the sale. More information can be found by searching QC 18869 on ato.gov.au

Relevant facts and circumstances: You and your spouse are citizens of an overseas country. While living overseas you purchased a property and lived there until you departed for Australia. You moved to Australia in 20XX as a temporary resident on a visa under the Migration Act 1958. In 20xx you sold the property and made a capital gain. Later that year, you were granted a visa which allows you to live and work in Australia permanently.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 768-910 | Income Tax Assessment Act 1997 section 768-915 | Income Tax Assessment Act 1997 section 768-950 | Income Tax Assessment Act 1997 Division 855