Main Residence Exemption: The Rules, Edge Cases, and Death Scenarios

Explore the main residence exemption in detail, including key rules, tricky cases and death-related implications.

In this session, we cover:

• Big picture framing

• Core rules refresher (full vs partial)

• Importance of ‘Dwelling’

  • TD 1999/67

  • TD 1999/69

• Ownership and residency complications

• What is a “main residence”?

• Absences and the six-year rule

• Income-producing use while living there

• Renovations, rebuilds and vacant land

• Death, Estates & Inherited Property

  • Division 128 of ITAA 97 - CGT on Death of Deceased

  • Safe harbour conditions

• Edge cases

  • Makrylos v Commissioner of Taxation [2023] FCA 971

  • Bowerman and Commissioner of Taxation [2023] AATA 3547