Private ruling: Capital gains tax
Date of advice: 21 September 2018
Published: October 2018
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you able to apply the absence rule for the period you were not living in your main residence and get the main residence exemption? | A1: Yes. The absence rule allows a taxpayer to choose to treat a dwelling as their main residence even though they no longer live in it. A taxpayer cannot make this choice for a period before a dwelling first becomes their main residence.

Relevant facts and circumstances: You purchased property A in XXXX and lived in this property as your main residence until XXXX. You purchased and moved into property B. Property A has been rented since XXXX and you have declared rental property income yearly in your income tax return. You have elected to treat property A as your main residence.

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