Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p66
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 66/80)
Character Range: 4509000–4511764

relation to the disposal of:
 (i) another ownership interest in the dwelling that was not a related spousal interest to the old interest; or
 (ii) an ownership interest in another dwelling.
Note 1: Subparagraph (i)(i) does not prevent another contribution, made for you from the capital proceeds from the disposal of the same interest, from also being a contribution covered under this section.
Note 2: That subparagraph also does not prevent another contribution, made for you from the capital proceeds from the disposal of a related spousal interest, from being a contribution covered under this section.

10‑year ownership condition
 (2) The condition in this subsection is met for the *disposal of the old interest if either or both of the following paragraphs applies:
 (a) at all times during the 10 years ending just before the disposal:
 (i) the old interest was held by you, your *spouse or your former spouse; or
 (ii) an *ownership interest in the land on which the *dwelling is situated was held by you, your spouse or your former spouse;
 (b) if subsection 118‑147(1):
 (i) applies because the old interest was a substitute property interest (within the meaning of that subsection) for an old dwelling referred to in paragraph 118‑147(1)(a); or
 (ii) would have applied as described in subparagraph (i) if paragraph 118‑147(1)(a) were modified to refer to a dwelling (the old dwelling) that was your main residence;
  you, your spouse or your former spouse *acquired an ownership interest in that old dwelling at least 10 years before the disposal.
Note: Section 118‑147 deals with a dwelling replacing an earlier dwelling that was compulsorily acquired or destroyed etc.

Cap on the amount of a downsizer contribution
 (3) Despite subsection (1), the contribution is covered under this section only to the extent that it does not exceed the lesser of:
 (a) $300,000, less any other contribution that is already covered under this section and made to a *complying superannuation plan in respect of you; and
 (b) the sum of the *capital proceeds from the disposals of:
 (i) the old interest; and
 (ii) any *related spousal interest to the old interest;
  less the sum of all other contributions that are already covered under this section, in relation to the disposal of the old interest or any related spousal interest to the old interest, and made to complying superannuation plans in respect of you or your *spouse.

Market value substitution rule
 (3A) In working out *capital proceeds for the purposes of paragraph (1)(b) or (3)(b), disregard section 116‑30 to the extent that it has the effect of increasing those capital proceeds.

Meaning of related spousal interest
 (4) A related spousal interest, to an *ownership interest in a *dwelling, is