Private ruling: Capital gains tax - becoming an Australian resident
Date of advice: 11 June 2021
Published: August 2021
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Does section 855-45 of the Income Tax Assessment Act 1997 (ITAA 1997) apply so that the first element of the cost base of the foreign rental property is taken to be the market value when you became a tax resident of Australia? | A1: Yes. When you became an Australian resident for tax purposes, section 855-45 of the ITAA 1997 applied so that the first element of the cost base of the foreign property was taken to be its market value at the time you become a resident. Further, the general capital gains tax provisions apply to the property as if you had acquired it at the time you became an Australian resident.

Relevant facts and circumstances: You own a dwelling in a foreign country (the dwelling). You purchased the dwelling as an investment property while you were a resident of the foreign country. You rented the dwelling out as soon as you were able. You relocated to Australia several years ago and became a tax resident of Australia at that time. The foreign property has continued to be rented out since you took up residence in Australia.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 855-45


This ruling applies for the following period periods :