Private ruling: Capital gains tax
Date of advice: 18 August 2025
Published: 20 October 2025
Ruling period: Year ended 30 June 2025
Date scheme commenced: 1 July 2024

Ruling: Q1: Are you entitled to disregard any capital gains tax on the sale of your property under Section 118-110 of the Income Tax Assessment Act 1997 ? | A1: Yes. Based on the information provided to the Commissioner you are entitled to the main residence exemption on the sale of your property. The property was your main residence for the whole of your ownership period. You did not use the property to derive assessable income, the property was less than 2 hectares in size, and you did not treat any other property as your main residence from the date you purchased the property until it was sold. You can disregard any capital gains tax made on the property under Section 118-110 of the ITAA 1997.

Relevant facts and circumstances: You are a resident of Australia for taxation purposes. You arrived in Australia several years ago. You obtained Australian citizenship a few years ago. You entered a contract to purchase a residential property (the property) a number of years ago. Settlement for the property took place shortly after you entered the contract and you and your family moved into the property and commenced treating it as your main residence on the same date. The property was sold several months ago. Your former spouse and children lived in the property until they moved to Australia. The property was left vacant until it was sold. You treated the property as your main residence for the whole of your ownership period. You did not treat any other property as your main residence for the same period. You elect to use the absence rule in Section 118-145 of the Income Tax Assessment Act 1997 to treat the property as your main residence when you moved to Australia until the property was sold.

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