Private ruling: CGT - main residence exemption
Date of advice: 19 December 2024
Published: 28 January 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 XX 20XX

Ruling: Q1: Can you use the 6 years absence rule under subsection 118-145(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to treat Property A as your main residence after you have moved out, for a maximum period of 6 years? | A1: Yes. As the Property was your main residence for the entire time of ownership, you are eligible for the main residence exemption for the entire time.>

Relevant facts and circumstances: On XX XX 20XX, you entered into a contract to purchase Property A. You moved into Property A following settlement. Property A is less than 2 hectares. In XX 20XX, your partner purchased Property B in their name. Your name was not included on the certificate of title. In XX 20XX, you moved into Property B with your partner. You did not change your residential address from Property A to Property B with the various government agencies. Property A was not used for income producing purposes, and remained vacant after you moved out. You stayed in Property A as per your work roster (2 weeks on, 2 weeks off), except during the COVID-19 lockdown period. On XX XX 20XX, you sold Property A.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-145(2)