Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 118 - Exemptions  

Subdivision 118-B - Main residence  

Rules that may extend the exemption

SECTION 118-150   If you build, repair or renovate a dwelling  

118-150(1)    
This section applies to land in which you have an *ownership interest (except a life interest) if you build a *dwelling on the land, or repair, renovate or finish building a dwelling on the land.

118-150(2)    
You can choose to apply this Subdivision as if the *dwelling that you are building, repairing or renovating on the land were your main residence from the time you *acquired the *ownership interest.

118-150(3)    
You can make the choice only if:

(a) a *dwelling on the land that you construct, repair or renovate becomes your main residence (except because of section 118-147 ) as soon as practicable after the work is finished; and

(b) it continues to be your main residence for at least 3 months.

118-150(4)    
There is a time limit during which the choice can operate. This is the shorter of:

(a) 4 years, or a longer time allowed by the Commissioner, before the *dwelling becomes your main residence; and

(b) the period starting when you *acquired your *ownership interest in the land and ending when the dwelling becomes your main residence.

118-150(5)    
If there was already a *dwelling on the land when you *acquired your *ownership interest and you or someone else occupied it after that time, the period in subsection (2) and paragraph (4)(b) starts when the dwelling ceased to be occupied.

118-150(6)    
Once you make the choice, no other *dwelling can be treated as your main residence during the period referred to in subsection (4), except if section 118-140 (about changing main residences) applies.