Edited version of private advice

Authorisation Number: 1051895454560

Date of advice: 7 September 2021

Ruling

Subject: Capital gains tax

Question 1

Will the time of acquisition of the Country X property by you be deemed to be XXX 20XX?

Answer

Yes. Subsection 768-955(3) of the Income Tax Assessment Act 1997 applies to deem the acquisition date of the Country X property as XXX 20XX.

Question 2

Will the Country X property be deemed to have been acquired for its market value by you on XXX 20XX?

Answer

Yes. Subsection 768-955(2) of the Income Tax Assessment Act 1997 applies to deem the first element of the cost base and reduced cost base of the Country X property to be the property's market value on XXX 20XX.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You were married at the time the below events took place.

You were a non-resident at all times prior to first arriving in Australia.

You along with your spouse entered into a contract to purchase an off-the-plan foreign property a number of years ago.

The building was completed in or about the 20XX income year and settlement occurred shortly thereafter.

You applied for a temporary resident visa to travel to Australia.

The visa was granted in the 20XX income year.

You travelled to Australia and arrived in the 20XX income year.

You travelled with your spouse with your belongings to Australia with the intention to reside in Australia indefinitely, therefore becoming Australian tax resident from your date of arrival.

Upon arrival in Australia, you rented a property for several months prior to purchasing your main residence.

You were granted permanent residency on in the 20XX income year.

The overseas property was sold during the year ended 30 June 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 768-955(3)

Income Tax Assessment Act 1997 subsection 768-955(2)