Private ruling: Main residence exemption
Date of advice: 25 October 2024
Published: 9 December 2024
Ruling period: Year ended XX XXXX 20YY | Year ended XX XXXX 20YY
Date scheme commenced: XX XXXX 20YY

Ruling: Q1: Are you able to treat the property as your main residence under section 118-145 of the Income Tax Assessment Act 1997 after you ceased living at the property? | A1: Yes. As you will make this choice, you can continue to treat the dwelling as your main residence for a maximum period of up to 6 years while it is used to produce income. You cannot treat any other dwelling as your main residence during this time. Further information about this choice can be found by entering 'QC 66030' into the search bar at ato.gov.au.

Relevant facts and circumstances: You and your spouse purchased the property as joint tenants. You commenced living in the property and established it as your main residence shortly after settlement. The size of the land on which the dwelling stands is less than 2 hectares. On XX XXXX 20YY, you began renting the downstairs area of the property, while you continued to reside in the upstairs area of the property. On XX XXXX 20YY, the tenant vacated the downstairs area of the property. On XX XXXX 20YY, you departed Australia to Country A to commence voluntary charity work. On XX XXXX 20YY, the property was tenanted through a real estate agent and will continue to produce income up until the date the property is sold. You will make an absence choice to treat the Australian property as your main residence during your period of absence in Country A and Australia while you are not residing in the property. In XXXX 20YY, you returned to Australia and are travelling domestically. In XXXX 20YY, you will travel to Country A and expect to return to Australia in XXXX 20YY. You will sell your Australian property in late 20YY or early 20YY. You will also be an Australian tax resident on the date of sale.

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