Private ruling: Capital gains tax
Date of advice: 27 September 2018
Published: November 2018
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you entitled to a full main residence exemption on your overseas property? | A1: Yes. You won’t have a capital gain on the disposal of your property, as you did not treat any other dwelling as your main residence when you came to Australia. Further information can be found by searching 'QC 52189 on ato.gov.au

Relevant facts and circumstances: You acquired property overseas in 20XX as sole owner with 100% ownership interest and this was your main residence until you arrived in Australia. You arrived in Australia in 20XX on a permanent visa. On arriving in Australia you did not treat any other dwelling as your main residence. You resided in rental properties. You had a spouse who came to Australia in 20XX on a permanent visa. He/she nominated the dwelling overseas as their main residence and did not treat any other dwelling as their main residence. Your property overseas was not used to produce income. You did not acquire an ownership interest in Australian property until 20XX. You and your spouse acquired an ownership property in Australia in 20XX and moved into this dwelling, making this your new main residence. You disposed of your ownership interest in your overseas property in 20XX.

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