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  • Death during construction



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    If an individual entered into a contract to construct, repair or renovate a home on land they already owned, and they die before certain conditions are met, the trustee may choose to have the home and land treated as the deceased’s main residence for up to four years before the home became (or was to become) their main residence.

    The trustee can make this choice if the deceased dies before:

    • the home is finished
    • it was practicable for the home to be their main residence, or
    • they had lived in the home for three months.

    If the trustee makes this choice, no other dwelling can be treated as the deceased’s main residence during that time.

    If the trustee of a deceased estate disposes of residential property in Australia that was owned by a foreign resident, the trustee may no longer be entitled to claim the main residence exemption for the deceased’s ownership period. There is a transitional period for properties acquired before 7.30pm AEST on 9 May 2017 which are disposed of on or before 30 June 2020.

    See also:

      Last modified: 20 Jul 2021QC 64895