Edited version of private advice

Authorisation Number: 1052381500627

Date of advice: 3 April 2025

Ruling

Subject: CGT - disposal of property

Question

Will you satisfy the life events test, at the time you dispose of the property under section 118-110 of the Income Tax Assessment Act 1997 (ITAA 1997) if the property is sold before the relevant date and you have obtained an order from the courts reflecting your relationship breakdown?

Answer

Yes.

Based on the information provided to the Commissioner you will satisfy the life events test at the time of the CGT event as you will have been a resident of Australia for tax purposes within the previous few years. Furthermore, the CGT event will occur as you will have obtained a relevant court order prior to the property being disposed of.

Consequently, you will not be denied the main residence exemption due to being a foreign resident at the time of the CGT event.

The main residence exemption will not apply if the property is not sold by the relevant date.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You purchased the property with your former partner.

The property was owned in different proportions by you your former partner.

You lived in the property as your main residence until a few years ago.

You were in a de-facto relationship with your ex-partner.

You and your ex-partner have separated.

A few years ago, you left Australia and became a non-resident of Australia for taxation purposes.

You lodged the relevant forms with the court for the revocation of your relationship several months ago.

You will sell the property in a few months.

You will obtain the relevant documentation from the court in relation to your relationship break down.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-110