Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p11
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 11/17)
Character Range: 259755–262351

until your legal ownership of it ends.

Rules that may extend the exemption

118‑135  Moving into a dwelling

  If a *dwelling becomes your main residence by the time it was first practicable for you to move into it after you *acquired your *ownership interest in it, the dwelling is treated as your main residence from when you acquired the interest until it actually became your main residence.

118‑140  Changing main residences

 (1) If you *acquire an *ownership interest in a *dwelling that is to become your main residence and you still have your ownership interest in your existing main residence, both dwellings are treated as your main residence for the shorter of:

 (a) 6 months ending when your ownership interest in your existing main residence ends; or

 (b) the period between the acquisition of the new ownership interest and the time when the ownership interest referred to in paragraph (a) ends.

 (2) Subsection (1) only applies if:

 (a) your existing main residence was your main residence for a continuous period of at least 3 months in the 12 months ending when your ownership interest in it ends; and

 (b) your existing main residence was not used for the *purpose of producing assessable income in any part of that 12 month period when it was not your main residence.

118‑145  Absences

 (1) If a *dwelling that was your main residence ceases to be your main residence, you may choose to continue to treat it as your main residence.

 (2) If you use the part of the *dwelling that was your 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.

 (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), at the end of 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