Private ruling: Main residence exemption
Date of advice: 5 December 2025
Published: 27 January 2026
Ruling period: XX 20XX
Date scheme commenced: XX 20XX

Ruling: Q1: Will the main residence exemption under section 118-110 of the Income Tax Assessment Act 1997 (ITAA 1997) apply to the disposal of the property? | A1: Yes. If you use your main residence for the purpose of producing assessable income, the maximum period that you can treat it as your main residence while you use it for that purpose is 6 years.

Relevant facts and circumstances: In XX 20XX, you purchased a Property. The land where the main residence stands is less than 2 hectares in size. You moved into the Property as soon as you purchased it and you claimed it as your main residence immediately. In XX 20XX, you move out and rented out the Property through an agent. On XX 20XX, you listed the Property on the market to sell. You are Australian resident for tax purpose and you choose to treat the Property as your main residence, even while it was available for rent. During the ruling period, the property will be sold.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-100 | Income Tax Assessment Act 1997 section 118-145