Private ruling: Partial main residence exemption - 50% CGT discount
Date of advice: 14 October 2025
Published: 1 December 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a partial main residence exemption on your 50% ownership interest when you sold your property? | A1: Yes. You made the choice under section 118-145 to continue to treat the property as your main residence for a period of 6 years from when you stopped living in it and leased it out. Section 118-100 of the ITAA 1997 provides that a main residence exemption does not apply in full if it was your main residence during part only of your ownership period or it was used for the purpose of producing assessable income. The six-year period under section 118-145 of the ITAA 1997 ends for you in X 20XX. Therefore, you are only entitled to a partial main residence exemption. Your non main residence days will be from X 20XX until settlement in X 20XX and subject to CGT on any capital gain. | Q2: Are you entitled to the 50% CGT discount on your 50% ownership interest of the property? | A2: Yes. Under section 115-25 of the ITAA 1997 a CGT discount is available when an A1 CGT event occurs on a CGT asset that was acquired 12 months prior to the CGT event occurring. As you acquired the property after 21 September 1999 and had ownership of the dwelling over 12 months prior to selling, you are entitled to a 50% CGT discount on your 50% ownership interest in the property.

Relevant facts and circumstances: In X 20XX, you and your husband jointly acquired a property (the property). The property size is under 2 hectares. The property was your main residence. In X 20XX, you moved out of the property. You commenced leasing out the property from X 20XX until X 20XX. You and your husband departed Australia in X 20XX and became a non-resident for tax purposes. The only assets you had in Australia were the property and the bank account which the rental income was deposited into. You have chosen to treat the property as your main residence after moving out in X 20XX. Your overseas trip was for employment purposes. From X 20XX until X 20XX you lived overseas. For Visa purposes, during the above period while you were living overseas, you returned to Australia for a short time. While living overseas you leased out accommodation. In X 20XX you returned to Australia for employment and to live for the foreseeable future. You became a resident of Australia for tax purposes. You did not return to live at the property. You leased out another property in a different location. In X 20XX, you sold the property. You were a resident of Australia for tax purposes for the 20XXincome year when the property was sold. Between X 20XX when you moved out of the property and when you sold the property in X 20XX, you did not treat any other property as your main residence.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-100 | Income Tax Assessment Act 1997 section 118-145