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Edited version of private advice

Authorisation Number: 1052115568075

Date of advice: 5 May 2023

Ruling

Subject: Main residence exemption

Question

Will the Commissioner exercise his discretion for the main residence exemption and extend the four-year period in accordance with subsection 118-150(4)(a) of the Income Tax Assessment Act 1997 until August 19XX?

Answer

Yes. The Commissioner will exercise his discretion for the main residence exemption and extend the four-year period in accordance with subsection 118-150(4)(a) of the Income Tax Assessment Act 1997 until August 19XX.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

In May 19XX, you purchased a vacant lot of land to construct your home which you intended to live in.

In August 19XX, settlement occurred.

Following settlement, you undertook the process of building a main residence, however experienced delays due to the area being part of a development which lacked significant infrastructure at the time to make the property habitable.

Items such as stormwater drainage took considerable time to install, a point that is noted by the council's surveyor report in 19XX.

You lived in a rental property whilst your property was being built.

Although you attempted to build your main residence within four years, you eventually received all the necessary occupancy council approvals, and the property was completed and ready to be occupied in August 19XX.

You stated that you did not retain the following documents or information:

•         Certificate of Occupancy

•         Date of final building inspection approval

•         Date of connection of gas and electricity.

You stated that you moved into the property in August 19XX.

You stated that the property was your main residence for at least 3 months from the date that you moved in.

You then later used the property for income producing purposes.

In April 20XX, you disposed of the property.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 118-150

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