Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 118.110

  (1)   A * capital gain or * capital loss you make from a * CGT event that happens in relation to a * CGT asset that is a * dwelling or your * ownership interest in it is disregarded if:

  (a)   you are an individual; and

  (b)   the dwelling was your main residence throughout your * ownership period; and

  (c)   the interest did not * pass to you as a beneficiary in, and you did not * acquire it as a trustee of, the estate of a deceased person.

Note 1:   You may make a capital gain or capital loss even though you comply with this section if the dwelling was used for the purpose of producing assessable income: see section   118 - 190.

Note 2:   There is a separate rule for beneficiaries and trustees of deceased estates: see section   118 - 195.

Note 3:   There is a separate rule for a CGT event that is a compulsory acquisition (or similar arrangement) happening to adjacent land but not also to the dwelling itself: see section   118 - 245.

  (2)   Only these * CGT events are relevant:

  (a)   CGT events A1, B1, C1, C2, E1, E2, F2, K3, K4 and K6 (except one involving the forfeiting of a deposit); and

  (b)   a CGT event that involves the forfeiting of a deposit as part of an uninterrupted sequence of transactions ending in one of the events specified in paragraph   (a) subsequently happening.

Note:   The full list of CGT events is in section   104 - 5.

  (3)   However, this section does not apply if, at the time the * CGT event happens, you:

  (a)   are an * excluded foreign resident; or

  (b)   are a foreign resident who does not satisfy the * life events test.

  (4)   You are an excluded foreign resident , at a particular time, if:

  (a)   you are a foreign resident at that time; and

  (b)   the continuous period ending at that time for which you have been a foreign resident is more than 6 years.

  (5)   You satisfy the life events test , at the time a * CGT event happens, if:

  (a)   the continuous period ending at that time for which you have been a foreign resident is 6 years or less; and

  (b)   you are covered by any of the following subparagraphs:

  (i)   you or your * spouse has had a * terminal medical condition that existed at any time during that period of foreign residency;

  (ii)   your * child has had a terminal medical condition that existed at any time during that period of foreign residency, and that child was under 18 years of age at at least one such time;

  (iii)   your spouse, or your child who was under 18 years of age at death, has died during that period of foreign residency;

  (iv)   the CGT event happens because of a matter referred to in a paragraph of subsection   126 - 5(1) involving you and your spouse (or former spouse).