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Edited version of private advice
Authorisation Number: 1052292025428
Date of advice: 15 August 2024
Ruling
Subject: Main residence exemption - absence rule
Question
Will any capital gain or loss you make due to the sale of the property be disregarded?
Answer
Yes. You can only claim the main residence exemption from capital gains tax up to a maximum area of two hectares including the area of land on which the dwelling is situated.
Further information regarding the two-hectare limitation can be found by searching 'QC 66037' on ato.gov.au.
This ruling applies for the following periods:
Year ended XX XXXX 20YY
Year ended XX XXXX 20YY
Year ended XX XXXX 20YY
The scheme commenced on:
XX XXXX 20YY
Relevant facts and circumstances
On XX XXXX 20YY, you obtained sole ownership of the property. You also moved into the property on the same day and established it as your main residence.
The size of the land on which the dwelling stands is greater than 2 hectares.
You intend to leave for Country A on XX XXXX 20YY.
The Australian property will be rented or made available for rent beginning from XXXX 20YY.
You intend to purchase a property in Country A within XX months of XX XXXX 20YY. You will not treat the Country A property as your main residence as you will make an absence choice to continue treating your Australian property as your main residence.
The Australian property will cease being rented or made available for rent in XXXX 20YY.
In XXXX 20YY, you will return to Australia, move into the Australian property and establish it as your main residence. You will continue living at the property until the settlement selling the property.
You will sell your Australian property within the period of this ruling. You will also be an Australian tax resident on the date of sale.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 102-20
Income Tax Assessment Act 1997 Section 104-10
Income Tax Assessment Act 1997 Section 118-110
Income Tax Assessment Act 1997 Section 118-145
Income Tax Assessment Act 1997 Section 118-185
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