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Edited version of private advice
Authorisation Number: 1051816535926
Date of advice: 17 March 2021
Ruling
Subject: Assessable foreign income
Question 1
Is net foreign rent derived from a foreign rental property assessable as foreign income?
Answer
No, you are a temporary resident under section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) and the ordinary income you derive from a source other than an Australian source is non-assessable non-exempt income for Australian Income Tax purposes under section 768-910 of the ITAA 1997.
Question 2
If the foreign rental property is sold would any capital gain be assessable?
Answer
No, you are a temporary resident under section 995-1 of the ITAA 1997 and you can disregard any capital gain or loss you make from a CGT event that is not 'taxable Australian property' under section 768-915 of the ITAA 1997.
This ruling applies for the following period:
Year ending 30 June 2021
The scheme commences on:
1 July 2020
Relevant facts and circumstances
You arrived in Australia for the first time during the year ended 30 June 2014.
Neither you, nor your spouse, are citizens or permanent residents of Australia.
You entered Australia on a temporary visa.
You are an Australian resident for tax purposes.
Relevant legislative provisions
<Income Tax Assessment Act 1997 section 995-1
Income Tax Assessment Act 1997 section 768-910
Income Tax Assessment Act 1997 section 768-915
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