Private ruling: CGT - rollover relief
Date of advice: 22 October 2025
Published: 8 December 2025
Ruling period: Period ending DD MM YY
Date scheme commenced: DD MM YY

Ruling: Q1: Will the marriage breakdown rollover provision under section 126-5 of the Income Tax Assessment Act 1997 (ITAA 1997) apply to your portion of your ownership interest in the property transferred by you to your former spouse? | A1: Yes. Under the binding Financial Agreement entered into and signed by you and your former spouse, you will, on or before DD MM YY, transfer your share of the ownership interest in the property at Address A, to your former spouse. The Financial Agreement you have both entered into is binding under section 90G of the Family Law Act 1975. As such the marriage breakdown rollover provision under section 126-5 of the ITAA 1997 will apply, allowing you to disregard any capital gain or capital loss made on the transfer of your ownership interest to your former spouse.

Relevant facts and circumstances: You and your former spouse are Australian citizens who live and work overseas. On DD MM YY you married and have since lived in various international locations. Since YY you have both been based in Location A. You are the Job Position A of the Location A office of Company A. Your former spouse is a Job Position B at Location A employer. In YY you and your former spouse purchased the residential property at Address A, in joint names. The property has been continuously rented out since it's purchase and has never been your main residence. On DD MM YY you and your former spouse separated. On DD MM YY a Deed of Separation under Location A law was executed which set out the division of your joint assets and finances. In MM YY you relocated from Location A to Location B and have been a resident there ever since. You have remained a non-resident of Australia since that time. On DD MM YY you both entered into a Financial Agreement under sections 90C and 90E of the Family Law Act 1975 in order to facilitate the division of your Australian owned assets. This original agreement had a typographical error in the date of the transfer of the property that saw it (in error) predate the original agreement. On DD MM YY a Revised Agreement was executed. Clause X of the agreement states that on or before DD MM YY you will transfer all of your rights, title, and interest in the property to your former spouse, for nil consideration. All expenses involved with the transfer are to be paid by your former spouse. The mortgage over the property will be discharged by your former spouse. Until the transfer takes place, your former spouse is responsible for all mortgage repayments and outgoings for the property and is solely entitled to the rental income from the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 126-5