Private ruling: Main residence exemption - foreign resident
Date of advice: 10 February 2020
Published: March 2020
Ruling period: Year Ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to apply the Main residence exemption and can disregard the capital gain you make where the disposal of the property occurs prior to 30 June 20XX? | A1: Yes. Having considered your circumstances and the relevant factors you are entitled to apply a capital gains tax exemption for the disposal of your Main residence. In your case the property was purchased prior to X May 20XX; you satisfy the existing requirements for the CGT Main residence exemption. Further information on capital gains tax changes for foreign investors can be found by searching 'QC 52005' on ato.gov.au

Relevant facts and circumstances: You were an Australian resident for tax purposes from financial year ending 30 June 19XX. You purchased and occupied a property as your Main residence. You moved overseas, subsequently lodging Australian income tax returns as non-residents. The property was occupied by and maintained for your children whilst they were studying in Australia. You returned to your Main residence on a regular basis. You maintained all connected utilities at the property until the residence was tenanted. You did not utilise the property to produce assessable income. The property was tenanted through a real estate agent. The property remains your Main residence as you were absent for a period less than X years. You disposed of the property prior to 30 June 20XX. You did not own a Main residence outside of Australia.

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