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Edited version of private advice
Authorisation Number: 1052344872184
Date of advice: 19 December 2024
Ruling
Subject: CGT - main residence exemption
Question
Can you use the 6 years absence rule under subsection 118-145(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to treat Property A as your main residence after you have moved out, for a maximum period of 6 years?
Answer
Yes.
As the Property was your main residence for the entire time of ownership, you are eligible for the main residence exemption for the entire time.>
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 XX 20XX
Relevant facts and circumstances
On XX XX 20XX, you entered into a contract to purchase Property A.
You moved into Property A following settlement.
Property A is less than 2 hectares.
In XX 20XX, your partner purchased Property B in their name. Your name was not included on the certificate of title.
In XX 20XX, you moved into Property B with your partner.
You did not change your residential address from Property A to Property B with the various government agencies.
Property A was not used for income producing purposes, and remained vacant after you moved out.
You stayed in Property A as per your work roster (2 weeks on, 2 weeks off), except during the COVID-19 lockdown period.
On XX XX 20XX, you sold Property A.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-145(2)