Main residence exemption

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.

Will the main residence exemption under section 118-110 of the Income Tax Assessment Act 1997 (ITAA 1997) apply to the disposal of the property?

Yes. If you use your main residence for the purpose of producing assessable income, the maximum period that you can treat it as your main residence while you use it for that purpose is 6 years. This ruling applies for the following period : XX 20XX The scheme commenced on: XX 20XX

In XX 20XX, you purchased a Property. The land where the main residence stands is less than 2 hectares in size. You moved into the Property as soon as you purchased it and you claimed it as your main residence immediately. In XX 20XX, you move out and rented out the Property through an agent. On XX 20XX, you listed the Property on the market to sell. You are Australian resident for tax purpose and you choose to treat the Property as your main residence, even while it was available for rent. During the ruling period, the property will be sold.

Income Tax Assessment Act 1997 section 118-100 Income Tax Assessment Act 1997 section 118-145

Details

Type: EPA
Issued: 5 Dec 2025

Source

ATO Legal Database ↗