Private ruling: CGT main residence exemption
Date of advice: 26 September 2023
Published: 13 November 2023
Ruling period: Year ended 30 June 2022
Date scheme commenced: 1 July 2022

Ruling: Q1: Are you entitled to a full main residence exemption on sale of the property? | A1: Yes. Based on the information provided to the Commissioner, you are entitled to a full main residence exemption on the sale of the property. You are electing to use the absence rule in Section 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997) to treat the property as your main residence for the period you were overseas. During the period you were overseas you treated no other property as your main residence for the same period.

Relevant facts and circumstances: You purchased the property several years ago. You moved into the property right after settlement and commenced living in it as your main residence. A couple of months later you had to go to overseas as your parent was seriously ill. You rented the property out. Due to Covid 19 restrictions in both Country Z and Australia, you were not able to return to Australia until a few years later. You moved back into the property upon your arrival in Australia and commenced living in it as your main residence. While in Country Z you treated the property as your main residence under the absence rule. You did not treat any other property as your main residence for the period you were in Country Z.

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