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Edited version of private advice
Authorisation Number: 1012624597919
Ruling
Subject: CGT - main residence
Question
Is there a minimum time requirement of occupancy of a dwelling to qualify for the main residence exemption?
Answer
No
This ruling applies for the following period(s)
Year ended 30 June 2014
The scheme commences on
1 July 2013
Relevant facts and circumstances
You own a property that was your main residence and is situated on land less than two hectares.
You rented out your property for nearly six years.
During the time you were absent from the property you did not treat another other property as your main residence.
You have now been living back in the property for one year.
You moved all of your possessions back into the dwelling.
You intended to live in the dwelling permanently depending if you found permanent work in the nearest city.
When you moved back into the dwelling you had utilities and bills connected in your name.
You are considering moving out of your property and renting it out again as you are finding it difficult to find work in Australia and may have to work overseas.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-110
Income Tax Assessment Act 1997 Section 118-115
Income Tax Assessment Act 1997 Section 118-145
Reasons for decision
CGT Determination Number TD 51 discusses relevant factors to consider when determining if you have established a dwelling as your main residence.
Some relevant factors may include, but are not limited to:
• the length of time the taxpayer has lived in the dwelling
• the place of residence of the taxpayer's family
• whether the taxpayer has moved his or her personal belongings into the dwelling
• the address to which the taxpayer has his or her mail delivered
• the taxpayer's address on the Electoral Roll
• the connection of services such as telephone, gas and electricity, and
• the taxpayer's intention in occupying the dwelling.
The relevance and weight to be given to each of these or other factors will depend upon the circumstances of each particular case.
The Commissioner does not specify any particular length of time a taxpayer has to live in a dwelling, but considers the relevant factors as noted above.
For instance, a mere intention to occupy a dwelling as a main residence, but without actually doing so, is insufficient to obtain the exemption.
The following factors indicate you have re-established the dwelling as your main residence.
• You have been living back in your dwelling for one year and do not have any other dwelling as your main residence.
• You moved all of your possessions back into the dwelling.
• You intended to live there permanently depending if you found permanent work in the nearest city.
• When you moved back into the dwelling you had utilities and bills connected in your name.
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