Edited version of private advice

Authorisation Number: 1051812883887

Date of advice: 16 March 2021

Ruling

Subject: Capital gains tax

Question 1

Did you re-establish your family home as your main residence late 20XX?

Answer

Yes. Based on the information provided to the Commissioner, you re-established the property as your main residence late 20XX.

The pandemic is a reasonable circumstance which saw your physical resumption of moving into the property delayed due to flights from Country Z being cancelled.

Question 2

Are you eligible for the 6-year absence rule for your home under section 118-145 of the Income Tax Assessment Act 1997 if you rent the property out while you reside elsewhere?

Answer

Yes. Based on the information provided to the Commissioner you are able to use the absence rule for the period.

You intend on renting part of the property while you are living elsewhere.

You will treat no other property as your main residence for the period the property is rented out.

This ruling applies for the following period:

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You and your spouse purchased the property jointly as a family home in late 20XX.

This property was your main residence from the date of purchase.

Your spouse commenced working in Country Z in early 20XX and you and your family joined him in Country Z in mid 20XX.

The property was listed for rent in mid 20XX and was rented out until late 20XX.

Your spouse retired from their job in Country Z in mid 20XX and it was your and your spouse's intention to move back to Australia and commence living in the family home.

You booked flights to leave Country Z in mid 20XX.

You gave your tenants in the family home in Australia notice that you were returning to Australia and would be living in the family home in mid 20XX.

Due to the pandemic you were delayed from returning to Australia until late 20XX.

You resumed possession of the family home in Australia on late 20XX.

You had all services connected and mail was directed to this address.

You had your belongings that had been in storage in Australia moved into the family home in Australia along with your things from Country Z brought over and moved in.

Your family home was listed as your residential address on the Australian electoral roll.

You notified the revenue office for land tax purposes that you were living back in the family home.

You purchased a car and registered your scooter.

You moved into the home in late 20XX after completing mandatory quarantining you flew into Australia.

Your intention was to live there permanently.

Your child is attending university.

It was intended that your child would live in a property owned by you and your spouse.

Due to a medical condition your child is not able to live independently for the near future.

You and your spouse have moved to live with them.

You went in earlier in the year and your spouse arrived later.

You intend on moving back to the family home as soon as your child is able to live independently or finishes their studies.

You intend on renting part of the family home out while you are living elsewhere.

You will not treat any other property as your main residence while the property is being rented out.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-145

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