Private ruling: Main residence exemption
Date of advice: 20 July 2017
Published: November 2017
Ruling period: Income period ending 30 June 2018
Date scheme commenced: 1 July 20CC

Ruling: Q1: Are you entitled to the main residence exemption on the sale of your dwelling? | A1: Yes

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You, your spouse and children are the holders of an Australian permanent Residency Visa and immigrated to Australia in 20AA. You and your spouse jointly purchased a dwelling in 20AA (the dwelling). You and your spouse lived in the dwelling with your X children for a short time following the purchase of the dwelling. Since 20AA, you travel overseas for about half the year to perform your business functions. When overseas, you reside with your sibling and your sibling’s family in a house that was left to you and your sibling. You provide financial and emotional assistance to your family and regularly visit them in Australia for half the year. You have X children who have lived with you and your spouse in the dwelling since 20AA until they completed their education. The children predominantly resided with your spouse when attending school and tertiary studies. You and your spouse have lived in the dwelling since 20AA until the dwelling was rented out. Your spouse visits family each year and spends no more than half the year overseas. While residing in Australia, your spouse attended Educational classes and has volunteered with not for profit organisations and the local church. Your spouse has regularly attended local church services and recreational classes. You and your spouse rented out your dwelling from 20BB to 20CC and stayed with your adult children in the children’s property. You and your spouse resumed occupation of the dwelling again in late 20CC and have continued to live in the dwelling until the settlement of the sale of the dwelling occurred in mid 20DD. You and your spouse consider your dwelling in Australia as your main residence and don’t own any other property in Australia.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-145 | Income Tax Assessment Act 1997 section 118-170 | Income Tax Assessment Act 1997 section 118-175

Reasons for decision: Summary: You and your spouse are entitled to a main residence exemption on the sale of the dwelling. The dwelling was occupied by you and your spouse for a short period following the settlement of the purchase of the dwelling. Your spouse has lived continuously in the dwelling from the date of purchase for a twelve year period. During this time, you have visited your family and resided in the dwelling for around 6 months each year. From 20BB until 20CC, you and your spouse rented out the dwelling. An absence choice was made to continue to treat the dwelling as your main residence. You and your spouse reoccupied the dwelling in 20CC and continued to reside in the dwelling until settlement of the sale of the dwelling.