Private ruling: Legal and beneficial ownership
Date of advice: 23 January 2023
Published: 13 March 2023
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you considered the beneficial owner of the property for the purposes of CGT event A1 occurring upon the disposal of the property? | A1: No.

Relevant facts and circumstances: You purchased a property for your child as your child was unable to secure finance to purchase the property. The property is your child's principal place of residence. You provided the deposit to purchase the property. You obtained a home loan mortgage in your name to finance the purchase of the property. You registered the title of the property in your name. You have never resided at the property. Since the property was purchased, your child has paid all the expenses relating to the property including: • renovation costs • repairs and maintenance • council rates • water rates • utilities • property insurance • other property related expenses. You do not hold the property as an investment property. The mortgage for the property is a home loan and not an investment property loan. A 20XX court hearing determined that you are not the beneficial owner of the property and that it is held in 'constructive trust' for your child. You receive a full government age pension from an external agency as their view is that you are not the beneficial owner of the property. Your child placed a caveat on the title of the property. Your child will receive all proceeds from the sale of the property. Your child wishes to sell the property to purchase an alternate residence for them and their spouse to live in. Your child will receive all proceeds from the sale of the property.

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