Private ruling: Main residence exemption
Date of advice: 10 December 2025
Published: 27 January 2026
Ruling period: Year ended DD/MM/20YY
Date scheme commenced: DD/MM/20YY

Ruling: Q1: Are you eligible to claim the main residence exemption for your property at XXX? | A1: Yes The property will be your main residence for the whole of your ownership period. You will not use the property to derive assessable income, the property is less than 2 hectares in size, and you have not treated any other property as your main residence from the date you purchased the property until it is sold. You can disregard any capital gains tax made on the property under section 118-110 of the Income Tax Assessment Act 1997.

Relevant facts and circumstances: On DD/MM/20YY, you and your spouse jointly purchased a property at XXX (Property A). On DD/MM/20YY, settlement occurred and you and your family moved into Property A on this date. You have resided at Property A since this date. You do not own any other properties and have not treated any other dwelling as your main residence during this time. Property A has never been used to produce assessable income. On DD/MM/20YY, you were also provided a property (Property B) to fulfil your employment duties, within that local community. The property address is XXX. During the 20YY tax year, you spent XXX days at Property A and XXX days at the Property B. The majority of your personal possessions and furniture are kept at Property A. Property B is furnished by your employer. You and your spouse have taken a small number of items there for comfort including, a bed, a sofa, a television and a coffee machine. Your employment requires you engage with the local community in several ways, hence the need to spend some time at Property B. Your tax return is lodged under the Property B address. You are on the electoral roll at Property B. Your driver's licence shows the Property B address. Your boat licence shows the Property A.

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