CGT - absence rule

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

Can you use the absence rule to treat the property as your main residence for up to 6 years?

Yes. Based on the information provided to the Commissioner you can use the absence rule in section 118-145 of the Income Tax Assessment Act 1997 to treat your property as your main residence for up to 6 years while you rent it out as an Airbnb property. This ruling applies for the following periods : Year ending 30 June 20YY Year ending 30 June 20YY The scheme commences on: 1 July 20YY

You and your spouse purchased the property. The property settled on DD MM YYYY. You and your spouse moved into the property shortly before settlement. You and your spouse continued to live at this property until DD MM YYYY. After you moved out, you and your spouse commenced living in rented accommodation in another area and renting out your property as an Airbnb. You and your spouse are using the absence rule to treat the property as your main residence. You and your spouse are not treating any other property as your main residence.

Income Tax Assessment Act 1997 section 118-110 Income Tax Assessment Act 1997 section 118-145

Details

Type: EPA
Issued: 18 Jan 2023

Source

ATO Legal Database ↗