Private ruling: CGT - main residence exemption
Date of advice: 8 April 2025
Published: 10 June 2025
Ruling period: DD MM YY
Date scheme commenced: DD MM YY

Ruling: Q1: Are you entitled to claim the main residence exemption under the 6-year absence rule? | A1: Yes. The absence rule under section 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a taxpayer to treat a property as their main residence for up to 6 years when rented out as long as they are choosing to treat no other dwelling as their main residence for the same period. Based on the information provided to the Commissioner you are able to apply the absence rule in section 118-145 of the ITAA 1997 and therefore you can disregard any capital gain made on the sale of the property, located at XXXX. Further information about the 6-year absence rule can be found by searching ato.gov.au for 'QC66030'.

Relevant facts and circumstances: On DD MM YY, you acquired the property at XXXX, following a marriage separation. The property contained a dwelling and was less than 2 hectares in size. On DD MM YY, you moved into the property with your children. You moved all of your house contents from your previous address. Your intention was to reside at the property for a considerable time. You changed the address on your driver licence. You also changed the address with your electricity provider, internet provider, and your salary packaging provider. You also advised your children's parent of the address change via email. You provided a statutory declaration that you contacted the police on several occasions regarding the behaviour of your neighbours. You raised concerns over the noise, offensive language, domestic violence, and arguments happening at your neighbour's property. You quickly made the decision that you had no other choice than to remove yourself and children from an environment that you did not feel safe and comfortable to live in. On DD MM YY, you moved out of the property, and into a rental property. You resided at the property for XX days. You sold the property and it settled on DD MM YY. During the ownership period, you did not treat any other dwelling as your main residence.

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