Private ruling: Capital gains tax and disposal of an overseas asset
Date of advice: 24 August 2018
Published: October 2018
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Can you disregard the capital gain or loss you make on the disposal of your overseas property as a temporary resident of Australia? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner has determined you are a temporary resident for taxation purposes. Further information on foreign income exemption for temporary residents can be found by searching ‘QC 18869’ on ato.gov.au .

Relevant facts and circumstances: You are from overseas and classed as a citizen of this country. While living in overseas you purchased property in 19XX and this was your main residence up until you departed this country. You moved to Australia in 20XX as a temporary resident on a visa under the Migration Act 1958. You have rented out your overseas property since departing and as a temporary resident you do not have to declare the rental income in your tax returns. This property has not yet been sold. You have not applied for permanent residency and you are not classed as a permanent resident in Australia. You came to Australia for a work opportunity and commenced this position in 20XX and have remained with this employer for several years. You have no family ties or a spouse in Australia. You have resided in rental properties since your arrival and you do not own real property in Australia. You have a motor vehicle, insurances and a bank account(s). Your furniture was transported over and any other items were purchased in Australia. Within the meaning of the Social Security Act 1991, you do not meet this criterion and are not eligible for this type of benefit. You intend to dispose of your ownership interest in your NZ property in 20XX.

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 768-950