The bright-line test for selling residential land
The Commissioner is seeking public feedback on changes to six existing QWBAs. The changes relate to the bright-line test for selling residential land. These updates will align the QWBAs with the current 2-year bright-line test, improving clarity for customers. Although the Commissioner is consulting on these updates, the substantive change relates to changes in the law since the original QWBAs were published. These changes include:
- updated terminology for when the bright-line test starts and ends
- changes to how the main home exclusion works
- expanded and revised rules for rollover relief
These changes are similar across all the new QWBAs. The only interpretive change is in the item concerning s CB 6 (PUB00460), which has been updated to state that “disposing” in s CB 6 (in terms of the required intention) is disposing of by way of sale or similar.
The project team also updated the language and appearance of the QWBAs to make them easier to read and consistent with other public guidance from the Tax Counsel Office. Additionally, QB 17/02 has been split into two draft QWBAs – one on bright-line start date and the other on date of acquisition for other land sale rules.
A reading guide with more details on the main changes is provided.
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