Commonwealth of Australia Consolidated Acts Commonwealth of Australia Consolidated ActsTotal adjacent land is 2 hectares or less
(1) A * capital gain or * capital loss you make from a * CGT event that happens in relation to land (the exempt land ), or your * ownership interest in it, is disregarded if:
(a) you are an individual; and
(b) the exempt land is all or part of a * dwelling's * adjacent land at the time of the CGT event; and
(c) the CGT event does not happen in relation to the dwelling and does not happen in relation to your ownership interest in the dwelling; and
(d) one of the following subparagraphs applies:
(i) the dwelling was your main residence throughout all or part of your * ownership period of the dwelling;
(ii) your ownership interest in the dwelling * passed to you as a beneficiary in a deceased estate;
(iii) you own your ownership interest in the dwelling as the trustee of a deceased estate; and
(e) section 118-250 (about compulsory acquisitions of adjacent land) applies to the CGT event and the exempt land; and
(f) the sum of the following is 2 hectares or less:
(i) the area of all of the dwelling's adjacent land at the time of the CGT event;
(ii) the area of the land immediately under the dwelling;
(iii) if this section applied to you for an earlier CGT event that involved reducing the area of the dwelling's adjacent land at the time of that earlier CGT event--that reduction in area.
Note: You may get only a partial exemption for the gain or loss (see section 118-260).
Total adjacent land is more than 2 hectares
(2) If:
(a) apart from paragraph (1)(f), subsection (1) would apply to the gain or loss; and
(b) you choose this subsection to apply to the gain or loss;
disregard so much of the gain or loss that relates to land (the exempt land ) within the * maximum exempt area for the * CGT event and the * dwelling.
Note: You may get only a partial exemption for this portion of the gain or loss (see section 118-260).