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Edited version of private advice
Authorisation Number: 1052311394675
Date of advice: 1 October 2024
Ruling
Subject: Main residence exemption
Question 1
Will you be entitled to choose to continue to treat the property as your main residence under section 118-145 of the Income Tax Assessment Act 1997 from DD MM 20YY until DD MM 20YY?
Answer
Yes.
Having considered how the property was treated during this time, you will be eligible to apply the 6-year absence rule to your main residence. Further information about treating your former home as main residence can be found by searching ato.gov.au for 'QC 66030'.
Question 2
Will you be entitled to choose to continue to treat the property as your main residence under section 118-145 of the Income Tax Assessment Act 1997 from DD MM 20YY until DD MM 20YY?
Answer
Yes.
Having considered how the property was treated during this time, you will be eligible to apply the absence to your main residence where the property was not used to produce assessable income.
Question 3
Will the period from DD MM 20YY until DD MM 20YY be counted as "non-main residence days" for the purpose of calculating a partial Main Residence Exemption for the property under section 118-185 of the Income Tax Assessment Act 1997?
Answer
Yes.
As the property was used to produce assessable income for more than six years at one time, these days will be counted as non-main residence days.
This ruling applies for the following periods:
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ended 30 June 20YY
Year ending 30 June 20YY
Year ending 30 June 20YY
The scheme commenced on:
DD MM 20YY
Relevant facts and circumstances
The property is located at XXXX (the property).
On DD MM 20YY, you entered into a contract to purchase the property. There was already a pre-established dwelling on the property at the time you purchased it. You were an Australian resident for tax purposes at the time you acquired the property.
You moved into the property immediately following settlement of the property and treated the property as your main residence.
The property is less than 2 hectares in size.
Prior to DD MM 20YY, you vacated the property and left it vacant.
On DD MM 20YY the property was first used to produce assessable income.
On DD MM 20YY you moved overseas and became a non-resident of Australia for tax purposes.
On DD MM 20YY the property ceased earning assessable income, and the property has not been used to produce income at any time since.
You will return to reside in Australia and will become an Australian resident for tax purposes when you return.
You will not earn any further assessable income from the property before you return to reside in it as your main residence.
You will not treat any other property worldwide as your main residence during the ruling periods.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-110
Income Tax Assessment Act 1997 section 118-145