Private ruling: Legal and beneficial ownership
Date of advice: 8 June 2023
Published: 31 July 2023
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 30 June 20XX

Ruling: Q1: Are you considered the beneficial owner of the property for capital gains tax (CGT) purposes? | A1: No.

Relevant facts and circumstances: In 20XX and 20XX, your parents were interested in purchasing a property. However, they were unemployed and did not believe that they would be able to obtain the finance required to purchase the property. You obtained the finance to purchase the property on their behalf. In February 20XX, you purchased the property. You did not and did not ever intend to occupy the property. Your parents contributed approximately $XXXX towards the purchase of the property. The funds were used to enable the settlement and included transfer duty, agent fees, council rates and land tax. You obtained a loan of $XXXX from Bank A to cover the remaining purchase price of the property. Your parents funded all expenses in relation to the property since it was purchased, including council rates, water rates, insurance, and mortgage repayments. Your mother occupied the property from February 20XX until November 20XX when she moved into a rental property. Your father occupied the property from February 20XX until it was sold. Your parents always treated the property as their own. Your parents agreed that upon the sale of the property, they would divide the proceeds evenly amongst themselves. The property was sold in the 20XX-XX income year. The property was not used to produce assessable income. A private ruling was issued which confirmed that your father was the beneficial owner of the property. A private ruling was issued which confirmed that your mother was also the beneficial owner of the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 104-10