16 Jun 10 Draft legislation: home owners CGT relief for partial compulsory acquisitions
In media release No 2010/127, issued 15 June 2010, the Assistant Treasurer, Senator Nick Sherry announced the release for public comment of exposure draft legislation to extend the CGT main residence exemption for compulsory acquisitions of land or structures that are adjacent to a taxpayer's main residence.
A taxpayer will be able to disregard a capital gain or a capital loss where there is a compulsory acquisition, or similar arrangement, of adjacent land or an adjacent structure that is part of the taxpayer's main residence where the dwelling is not also being compulsorily acquired.
"To ensure consistency with the existing main residence CGT exemption, limits will apply to the area of land that can be covered under the new exemption," the Assistant Treasurer said.
The consultation period on the exposure draft legislation closes on 14 July 2010.