| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012755685691
Ruling
Subject: CGT cost base
Question and Answer
Do you calculate the cost base of your assets from the day you cease to be a temporary resident but remain an Australian resident?
Yes
This ruling applies for the following period(s)
Year ended 30 June 2013
The scheme commences on
1 July 2012
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You arrived in Australia on a temporary resident visa.
You became a permanent resident during the financial year ended 30 June 2013.
You own CGT assets outside of Australia.
Relevant legislative provisions
Section 768-955 of the Income Tax Assessment Act 1997
Reasons for decision
reached our decision.
Temporary residents and CGT
Normally, when a foreign resident becomes an Australian resident, a cost base applies for certain assets held by that person. This rule will not apply where the person is a temporary resident.
Where a temporary resident ceases to be a temporary resident but remains an Australian resident (e.g. becomes a permanent resident), the first element of the cost base or reduced cost base of each CGT asset that is brought within the CGT net as a result of your change of residency status. The cost base is deemed to be the asset market value at the time you ceased to be a temporary resident. The CGT provisions will apply to the asset as if it had been acquired at that time.