Edited version of private advice

Authorisation Number: 1052177790595

Date of advice: 16 October 2023

Ruling

Subject: CGT - main residence exemption

Question

Are you eligible for the full main residence exemption under section 118-110 of the Income Tax Assessment Act 1997, in relation to the disposal of the Property?

Answer

Yes. The conditions for the full main residence are satisfied. Specifically, the dwelling on the property was your main residence throughout your ownership period.

This private ruling applies for the following period:

Year ended X June 20XX.

The scheme commenced on:

X July 20XX.

Relevant facts and circumstances

You purchased a block of land at as sole owner in 20XX, with the intention of building a house on it. The purchase settled in November 20XX.

The block of land was less than 2 hectares in size.

You entered into a contract with a builder in December 20XX.

Construction of the house was completed by September 20XX, and you moved in as soon as practicable after that. Your spouse moved in with you at a later date, and you have resided together since.

You are choosing to backdate the date the Property began to be your main residence, to the date of settlement of the purchase.

You resided in the house on the Property until December 20XX, when you ceased residing in it and began renting it out.

In 20XX, you decided to sell the Property and entered into a contract to sell on in 20XX.

You continued to treat the Property as your main residence during the time it was being rented out, until the date of Property settlement in 20XX.

Relevant legislative provisions

Income Tax Assessment Act Part 3-1

Income Tax Assessment Act Subdivision 118-B

Income Tax Assessment Act section 118-110