Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p21
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 21/29)
Character Range: 2249648–2252282

main residence for the *purpose of producing assessable income, the maximum period that you can treat it as your main residence under this section while you use it for that purpose is 6 years. You are entitled to another maximum period of 6 years each time the dwelling again becomes and ceases to be your main residence.
 (3) If you do not use the *dwelling for that purpose, you can treat it as your main residence under this section indefinitely.
 (3A) This section does not apply if the *dwelling was your main residence because of section 118‑147 and ceases to be your main residence because of subsections 118‑147(3) and (4).
 (4) If you make the choice, you cannot treat any other *dwelling as your main residence while you apply this section, except if section 118‑140 (about changing main residences) applies.
Example: You live in a house for 3 years. You are posted overseas for 5 years and you rent it out during your absence. On your return you move back into it for 2 years. You are then posted overseas again for 4 years (again renting it out). You then move back into it for 3 years, after which you sell the house.
 You have not treated any other dwelling as your main residence during your absences.
 You may choose to continue to treat the house as your main residence during both absences because each absence is less than 6 years.
 You can make this choice when preparing your income tax return for the income year in which you sold the house.

118‑147  Absence from dwelling replacing main residence that was compulsorily acquired, destroyed etc.
 (1) This section applies if:
 (a) a *dwelling (the old dwelling) is treated as your main residence because of your choice under section 118‑145; and
 (b) because of an event (the key event) described in subsection 124‑70(1):
 (i) you cease to have any *ownership interest in the old dwelling; or
 (ii) the old dwelling is lost or destroyed; and
 (c) after the key event you have an ownership interest (the substitute property interest) in:
 (i) a dwelling (the substitute dwelling); or
 (ii) land (the substitute land) that did not have a dwelling on it at the later of the time just after the key event and the time you *acquired the interest; and
 (d) you acquired the substitute property interest at a time (the substitute property acquisition time) no later than one year, or within such further time as the Commissioner allows in special circumstances, after the end of the income year in which the key event happens.
Note 1: Subsection 124‑70(1) deals with compulsory acquisitions, disposals in circumstances involving powers of compulsory acquisition, expiry