This interpretation statement explains how the bright-line rules (including the main home exclusion and rollover relief) apply in various situations involving residential land and transfers involving a look-through company (LTC). This interpretation statement applies only to transfers on or after 1 July 2024.  

CA ANZ notes that the different positions adopted throughout the draft interpretation statement reveal a lack of consistency as to how transparent an LTC is when determining whether a transfer/disposal of residential land is subject to the bright-line test. For the LTC regime to have any workable basis there must be some guiding principles on how the statutory fiction is to be applied and this must be consistent. The current approach in the draft interpretation statement does not provide this. An overall framework needs to be articulated and then this can be applied to situations such as in the draft interpretation statement. 

CA ANZ recommends a review and reconsideration of certain aspects of the interpretation statement.