Private ruling: CGT Main Residence Exemption
Date of advice: 3 June 2019
Published: August 2019
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you disregard the capital gain made on the sale of your main residence? | A1: Yes. You are able to disregard the capital gain you made on sale of your main residence in accordance with section 118-110 of the Income Tax Assessment Act 1997 (ITAA 1997) as you can continue to treat your dwelling as your main residence in your absence in accordance with section 118-145 of the ITAA 1997 indefinitely as you did not use the dwelling for the purpose of producing assessable income.

Relevant facts and circumstances: You and your family arrived in Australia on a temporary visa with the intention to live in Australia. You purchased vacant land with the intention to build a dwelling to live in as your main residence. You constructed a dwelling on the land. You and your family moved in as soon as practicable. Your temporary visa expired, however you were granted a tourist visa to stay in Australia and continued to live in the property. Due to family reasons you returned to your home country to deal with family issues. You returned to Australia after the issues had been dealt with. During the years ended 30 June 20XX and 30 June 20XX you provided care for your parent in your home country. Your sibling looked after the property during this time. In the year ending 30 June 20XX you decided to return to Australia and sell the property. The property was sold in the year ending 30 June 20XX. You have not used the property to produce income, even while absent from the property. You did not treat any other property as your main residence during the period of ownership.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-145