Private ruling: CGT - main residence exemption
Date of advice: 10 September 2025
Published: 17 November 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: You purchased the residential property at XXXX (the property) on DD MM YY, which settled on DD MM YY. The property contained a dwelling and was less than 2 hectares in size. You moved into the property immediately upon settlement and treated it as your main residence. On DD MM YY, you temporarily left Australia and remained overseas for approximately XX years. During this period, the property was vacant and not rented or otherwise used to produce income. You returned to Australia on DD MM YY on a student visa and resumed living in the same property until it was sold On DD MM YY. You lodged tax returns as an Australian tax resident from DD MM YY up to your departure, and again from your return on DD MM YY until the sale of the property. On DD MM YY, you applied for a subclass XX visa, and you have not left Australia since. You sold the property on DD MM YY, with a XX-day settlement term. You were an Australian resident at the time of settlement on DD MM YY. During the ownership period, you did not treat any other dwelling as your main residence. The property was not rented or used to generate assessable income at any time.

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