Private ruling: Capital gains tax - main residence exemption
Date of advice: 1 February 2021
Published: March 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you disregard any capital gain made on the sale of your property? | A1: Yes. You are able to disregard any capital gain you will make on the sale of your main residence in accordance with section 118-110 of the Income Tax Assessment Act 1997 (ITAA 1997). You can continue to treat your dwelling as your main residence in your absence in accordance with section 118-145 of the ITAA 1997 indefinitely as you did not use the dwelling for the purpose of producing assessable income. The foreign resident exclusion does not apply as you owned the property before 9 May 20XX and you sold it before 1 July 20XX.

Relevant facts and circumstances: You were born in Australia and are an Australian Citizen. Approximately XX years ago you purchased a residential property. Once settlement occurred on the property you occupied the property and it remained your main residence until you departed Australia in XX/XXXX. You migrated to Country B to follow work opportunities. You established a home in Country B and continue to reside there. You sold your Australian property during the year ended 30 June 20XX. You never used your Australian property for income producing purposes and your furniture and some personal belongings remained in the property while you lived in Country B.

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