Private ruling: CGT - main residence
Date of advice: 21 April 2023
Published: 5 June 2023
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you disregard the capital gain you made on the disposal of the Property? | A1: Yes. It is accepted that you meet the conditions for the main residence exemption under section 118-110 of the Income Tax Assessment Act 1997 (ITAA 1997) to apply to the capital gain made on disposal of the Property because: Further information about your main residence can be found by searching 'QC 66028' on ato.gov.au

Relevant facts and circumstances: In October 20XX, you purchased a Property which consisted of a Dwelling on approximately XXX square metres of land for $X, with settlement occurring soon after. Shortly after settlement you moved into the Dwelling and lived there as your main residence. Around the middle of 20XX, your spouse to be moved into the Dwelling as their main residence. On XX April 20XX you were married and continued to live in the Dwelling. In late 20XX you decided to undertake a major renovation. In December 20XX you and your family moved out of the Dwelling. You knew the renovation would be long and complicated as it involved knocking down the back of the house with the only bathroom and adding two bedrooms upstairs. You also wanted to be sure that your child would be ready to start kindergarten at a new school without the disruption of a move once the renovation had begun. You made the choice to continue to treat the Dwelling as your main residence. Neither you nor your spouse treated any other dwelling as your main residence during this time. While the renovation was being completed you and your family lived first at Property A and then at Property B, where you remain currently. By the time construction was nearing completion, due to a change in your employment, you decided not to move back into the Dwelling. The Dwelling was not used to produce assessable income. Once the renovation was completed you engaged a real estate agent and moved furniture in to stage the Dwelling. On X March 20XX the Property was sold at Auction. On the X June 20XX settlement occurred. You made a capital gain on disposal of the Property.

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


You moved into the Dwelling as soon as practicable | You made the choice to treat the Dwelling as your main residence after you moved out | The Dwelling was your main residence for your entire ownership period by way of physically occupying the Dwelling together with the period covered by your choice, and | You did not treat any other dwelling as your main residence during your ownership period