Taxation Laws Amendment Act (No. 3) 1997 (147 of 1997)

Schedule 5   Principal residence exemption from CGT

Part 1   Amendment of the Income Tax Assessment Act 1936

Division 3   Dwellings acquired from deceased persons: status of residence at time of death

27   After subsection 160ZZQ(20A)

Insert:

(20AA) For the purposes of subsections (17), (17A) and (19), if, immediately before the death of the deceased person concerned, the dwelling concerned:

(a) was the deceased person's sole or principal residence; and

(b) was not being used for the purpose of gaining or producing assessable income;

then:

(c) the number of days mentioned in paragraphs (17)(e), (17A)(e) or (19)(e) (as appropriate) is taken to be nil; and

(d) the number of days mentioned in paragraphs (17)(j), (17A)(h) or (19)(h) (as appropriate) is worked out from and including the date of the death, instead of the date on which the deceased person acquired the dwelling.