PUB00429 Income Tax – How absences affect the main home exclusion to the bright-line test

The draft interpretation statement considers whether the main home exclusion to the bright-line test applies when a person leaves their dwelling for a time during the bright-line period for:

• land acquired on or after 27 March 2021 (10-year bright-line test and 5-year new build bright-line test); and 
• land acquired from 29 March 2018 to 26 March 2021 (5-year bright-line test)

CA ANZ suggests some aspects of the items be reviewed and clarified with additional references. CA ANZ also recommends additional examples be included in the draft QWBA illustrating a situation where the 12-month buffer can be used multiple times during the bright-line period; and a scenario where the landowner has moved out of the property for a time and has returned for a ‘longer’ period and vacated the property again.

PUB00429 QWBA – If a person has two or more homes, which home is their main home for the purpose of the main home exclusion to the bright-line test?

Under the main home exclusion to the bright-line test a person can have only one main home. If a person owns two or more homes the person must determine which home they have the greatest connection with. The draft QWBA sets out the factors to be considered in this situation. They are:

• the time the person has occupied the home;
• where the person’s immediate family lives;where the person’s social ties are strongest;
• where the person’s employment, business interests and economic ties are located; and
• where the person’s personal property is located.

CA ANZ recommends the draft QWBA be reviewed and amended to confirm its scope mirrors that of the draft interpretation statement.