Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 9/12)
Character Range: 2291781–2294381

your ownership interest in the dwelling; and
 (d) one of the following subparagraphs applies:
 (i) the dwelling was your main residence throughout all or part of your *ownership period of the dwelling;
 (ii) your ownership interest in the dwelling *passed to you as a beneficiary in a deceased estate;
 (iii) you own your ownership interest in the dwelling as the trustee of a deceased estate; and
 (e) section 118‑250 (about compulsory acquisitions of adjacent land) applies to the CGT event and the exempt land; and
 (f) the sum of the following is 2 hectares or less:
 (i) the area of all of the dwelling's adjacent land at the time of the CGT event;
 (ii) the area of the land immediately under the dwelling;
 (iii) if this section applied to you for an earlier CGT event that involved reducing the area of the dwelling's adjacent land at the time of that earlier CGT event—that reduction in area.
Note: You may get only a partial exemption for the gain or loss (see section 118‑260).

Total adjacent land is more than 2 hectares
 (2) If:
 (a) apart from paragraph (1)(f), subsection (1) would apply to the gain or loss; and
 (b) you choose this subsection to apply to the gain or loss;
disregard so much of the gain or loss that relates to land (the exempt land) within the *maximum exempt area for the *CGT event and the *dwelling.
Note: You may get only a partial exemption for this portion of the gain or loss (see section 118‑260).

No exemption if you are an excluded foreign resident
 (3) However, this section does not apply if, at the time the *CGT event happens, you:
 (a) are an *excluded foreign resident; or
 (b) are a foreign resident who does not satisfy the *life events test.

118‑250  Compulsory acquisitions of adjacent land
 (1) This section applies to the *CGT event and the exempt land if the CGT event involves:
 (a) the compulsory *acquisition of the exempt land by:
 (i) an *Australian government agency; or
 (ii) an entity under a power conferred by an *Australian law; or
 (b) you *disposing of the exempt land to an entity in circumstances meeting all of these conditions:
 (i) the disposal takes place after a notice was served on you by or on behalf of the entity;
 (ii) the notice invited you to negotiate with the entity with a view to the entity acquiring the exempt land by agreement;
 (iii) the notice informed you that if the negotiations were unsuccessful, the exempt land would be compulsorily acquired by the entity;
 (iv) the compulsory acquisition would have been under a power of compulsory acquisition conferred by an Australian law.
Note: For paragraph