Private ruling: CGT cost base
Published: January 2015
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Question and Answer | Do you calculate the cost base of your assets from the day you cease to be a temporary resident but remain an Australian resident? | Yes

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You arrived in Australia on a temporary resident visa. You became a permanent resident during the financial year ended 30 June 2013. You own CGT assets outside of Australia.

Relevant legislative provisions: Section 768-955 of the Income Tax Assessment Act 1997

Reasons for decision: Summary: reached our decision. | Detailed Reasoning - Temporary residents and CGT: Normally, when a foreign resident becomes an Australian resident, a cost base applies for certain assets held by that person. This rule will not apply where the person is a temporary resident. Where a temporary resident ceases to be a temporary resident but remains an Australian resident (e.g. becomes a permanent resident), the first element of the cost base or reduced cost base of each CGT asset that is brought within the CGT net as a result of your change of residency status. The cost base is deemed to be the asset market value at the time you ceased to be a temporary resident. The CGT provisions will apply to the asset as if it had been acquired at that time.