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Edited version of your written advice
Authorisation Number: 1051416771537
Date of advice: 24 August 2018
Ruling
Subject: Capital gains tax and disposal of an overseas asset
Question
Can you disregard the capital gain or loss you make on the disposal of your overseas property as a temporary resident of Australia?
Answer
Yes.
Having considered your circumstances and the relevant factors, the Commissioner has determined you are a temporary resident for taxation purposes. Further information on foreign income exemption for temporary residents can be found by searching ‘QC 18869’ on ato.gov.au.
This ruling applies for the following period:
Year ending 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You are from overseas and classed as a citizen of this country.
While living in overseas you purchased property in 19XX and this was your main residence up until you departed this country.
You moved to Australia in 20XX as a temporary resident on a visa under the Migration Act 1958.
You have rented out your overseas property since departing and as a temporary resident you do not have to declare the rental income in your tax returns. This property has not yet been sold.
You have not applied for permanent residency and you are not classed as a permanent resident in Australia.
You came to Australia for a work opportunity and commenced this position in 20XX and have remained with this employer for several years.
You have no family ties or a spouse in Australia.
You have resided in rental properties since your arrival and you do not own real property in Australia.
You have a motor vehicle, insurances and a bank account(s).
Your furniture was transported over and any other items were purchased in Australia.
Within the meaning of the Social Security Act 1991, you do not meet this criterion and are not eligible for this type of benefit.
You intend to dispose of your ownership interest in your NZ property in 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 768-910
Income Tax Assessment Act 1997 section 768-950