Document ID: chunk:federal_register_of_legislation:C2025C00162:section:1118:p5
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 1118 (pt 5/6)
Character Range: 2156769–2159433

by the Secretary.

Application of proceeds of sale of principal home
 (1B) Subsection (2) applies if:
 (a) a person sells the person's principal home; and
 (b) either:
 (i) the person does not have a right or interest in a principal home; or
 (ii) the person has a right or interest in a principal home that the Secretary is satisfied does not give the person reasonable security of tenure in the home; and
 (c) before the end of 24 months, or any longer period determined under subsection (2B), after the sale, one or more of the following applies:
 (i) the person intends to apply the whole or a part of the proceeds of the sale to build, rebuild, repair or renovate another residence that is to be the person's principal home;
 (ii) the person applies the whole or a part of the proceeds of the sale to build, rebuild, repair or renovate another residence that is to be the person's principal home;
 (iii) the person intends to apply the whole or a part of the proceeds of the sale to purchase another residence that is to be the person's principal home.
 (2) For the purposes of this Act (other than Division 1B of Part 3.10):
 (a) if subparagraph (1B)(c)(i) applies—disregard the proceeds, to the extent that the person intends to apply those proceeds to build, rebuild, repair or renovate the other residence, until the earlier of the following times:
 (i) the period mentioned in paragraph (1B)(c) ends;
 (ii) the Secretary becomes satisfied that the person has ceased to have that intention; or
 (b) if subparagraph (1B)(c)(ii) applies—disregard the value of the following, until the end of the period mentioned in paragraph (1B)(c), to the extent that the person applies those proceeds to build, rebuild, repair or renovate that other residence:
 (i) the value of the other residence;
 (ii) the value of the land on which the other residence is being built, rebuilt, repaired or renovated to the extent that, once the building becomes the person's principal home, the land will, under section 11A, be included in a reference to the principal home;
 (iii) the value of any other structure, on that land, that is to be the person's principal home to the extent that the structure was built before the person began applying those proceeds; or
 (c) if subparagraph (1B)(c)(iii) applies—disregard the proceeds, to the extent that the person intends to apply those proceeds to purchase the other residence, until the earlier of the following times:
 (i) the period mentioned in paragraph (1B)(c) ends;
 (ii) the Secretary becomes satisfied that the person has ceased to have that intention.
 (2A) Subsection (2) does not apply to the calculation of the value of