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Edited version of private advice
Authorisation Number: 1052173458947
Date of advice: 26 September 2023
Ruling
Subject: CGT main residence exemption
Question
Are you entitled to a full main residence exemption on sale of the property?
Answer
Yes. Based on the information provided to the Commissioner, you are entitled to a full main residence exemption on the sale of the property.
You are electing to use the absence rule in Section 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997) to treat the property as your main residence for the period you were overseas.
During the period you were overseas you treated no other property as your main residence for the same period.
This ruling applies for the following period:
Year ended 30 June 2022
The scheme commenced on:
1 July 2022
Relevant facts and circumstances
You purchased the property several years ago.
You moved into the property right after settlement and commenced living in it as your main residence.
A couple of months later you had to go to overseas as your parent was seriously ill.
You rented the property out.
Due to Covid 19 restrictions in both Country Z and Australia, you were not able to return to Australia until a few years later.
You moved back into the property upon your arrival in Australia and commenced living in it as your main residence.
While in Country Z you treated the property as your main residence under the absence rule.
You did not treat any other property as your main residence for the period you were in Country Z.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-145