Private ruling: CGT - main residence
Date of advice: 20 October 2025
Published: 8 December 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you disregard the capital gain you made on the sale of your interest in the Property? | A1: Yes. You treated the Property as your main residence for your entire ownership period. Therefore, you can disregard the capital gain you made on the sale of your interest in the Property.

Relevant facts and circumstances: Your parents bought the Property as joint tenants in 19XX. They had 2 children. The Property size was less than 2 hectares. In 20XX, your spouse (child A), moved into the Property. In 20XX, you moved into the Property. In 20XX, your parent A passed away. Your parent B received parent A's interest in the Property as the surviving joint tenant. In 20XX, parent B passed away. Parent B's will appointed child A as executor and named child A and child B residuary beneficiaries in equal shares. The Property did not transfer to the residuary beneficiaries according to the will. On XX XXX 20XX, you, and child A and child B (residuary beneficiaries) executed a deed (the deed). The deed: • allowed you and child A to jointly purchase child B's one-half interest in the Property for $XXX payable to child B within 12 months after execution of the deed. • provided you and child A ongoing use and occupation of the Property, without any compensation to • child B. • did not provide you a right to occupy the Property. In 20XX, the deed settled. You and child A became legal owners of the Property as joint tenants in equal shares. You both remained in the Property until it was leased. When you and child A moved to Property B, you chose to continue to treat the Property as your main residence. From XX XXX 20XX, the Property was leased. The Property sale settled in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-130 | Income Tax Assessment Act 1997 section 118-145