Private ruling: Main Residence Exemption - Foreign Resident
Date of advice: 21 January 2020
Published: March 2020
Ruling period: Year Ended 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Are you entitled to apply the partial Main Residence Exemption where the disposal of the property occurs prior to 30 June 2020? | A1: Yes. In your case the property was purchased prior to 9 May 2017; you satisfy the existing requirements for the CGT main residence exemption. Application of partial main residence exemption will only be able to be claimed for a disposal that occurs up until 30 June 2020. 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 for a period. You purchased a property, contracts were exchanged with settlement occurring. You occupied the property as your main residence. You moved overseas becoming a non-resident of Australia for tax purposes. Your main residence was tenanted upon your departure from Australia and continues to be tenanted. The six year period to treat your tenanted property as your Main residence is from commencement of tenanting for six years. You intend to dispose of your Main Residence prior to or by 30 June 2020.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-145 | Income Tax Assessment Act 1997 section 118-185 | Income Tax Assessment Act 1997 section 118-190