Edited version of private advice

Authorisation Number: 1052036688947

Date of advice: 21 September 2022

Ruling

Subject: CGT - disposal of overseas asset

Question

Can you disregard the capital gain or capital 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 facts, the Commissioner has determined you are a temporary resident for tax purposes and the capital gain or capital loss you incurred when you sold your overseas property, can be disregarded. Further information on foreign and temporary residents can be found on our website at ato.gov.au and searching 'QC 65131'.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

Year beginning 1 July 20XX

Relevant facts and circumstances

You were born overseas and are a citizen of country X.

You acquired property in country X, and this was your main residence until your departure.

You moved to Australia in 20XX and entered Australia on a visa under the Migration Act 1958, as a temporary resident.

You rented your overseas dwelling up until you disposed of the property.

You have not applied for permanent residency or Australian citizenship.

You came to Australia for a full-time employment opportunity.

You do not have a spouse within the meaning of the Social Security Act 1991.

You have not acquired Australian real property since your arrival, and reside in rental accommodation.

You sold your overseas property in 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 104-10

Income Tax Assessment Act 1997 section 768-915

Income Tax Assessment Act 1997 section 855-10

Income Tax Assessment Act 1997 section 995-1

Migration Act 1958

Social Security Act 1991