Private ruling: CGT/main residence/6 year absence
Date of advice: 12 August 2025
Published: 27 October 2025
Ruling period: Year ended 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Can you claim the main residence exemption under the 6 year absence rule in accordance with subsection 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The absence rule under section 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a taxpayer to continue to treat a dwelling as their main residence for up to 6 years if they use the dwelling for the purpose of producing assessable income. Based on the information provided to the Commissioner, you are able to apply the absence rule in section 118-145 of the ITAA 1997 to disregard any capital gain made on the disposal of your 50 per cent ownership interest in the property when rented out for up to six years where no other dwelling is treated as your main residence by both you and your spouse for the same period.

Relevant facts and circumstances: You and your spouse purchased Property A as joint tenants on DD MM 20YY. The property is less than 2 hectares. You and your family resided at Property A until DD MM 20YY. Property A was leased from DD MM 20YY until DD MM 20YY. You and your family moved back into Property A on DD MM 20YY. You undertook some work on Property A including painting and installing new light fittings. Property A was listed for sale on DD MM 20YY and sold on DD MM 20YY. You will claim the main residence exemption to continue to treat your 50 per cent ownership interest in Property A as your main residence from when you purchased the property in 20YY until settlement in MM 20YY. Between MM 20YY and MM 20YY, you resided at the Property B. You and your spouse purchased a Property C as joint tenants on DD MM 20YY. You resided at Property C from MM 20YY to DD MM 20YY. You moved back into property C on DD MM 20YY.

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 995-1