Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1989No. 107, 1989 - SECT 19

19. Section 160ZZQ of the Principal Act is amended:

   (a)  by omitting paragraphs (2) (a) and (b) and substituting the following
        paragraphs:

"(a) in the case of a dwelling other than a flat or home unit:

        (i)    a legal or equitable estate or interest in the land on which
               the dwelling is erected; or

        (ii)   a licence or right to occupy the dwelling; or

   (b)  in the case of a flat or home unit:

        (i)    a legal or equitable estate or interest in a stratum unit in
               relation to the flat or home unit;

        (ii)   a licence or right to occupy the flat or home unit; or

        (iii)  a share in a company that owns a legal or equitable estate or
               interest in the land on which the building containing the flat
               or home unit is erected, being a share that entitles the holder
               to a right of occupancy of the flat or home unit.";

   (b)  by omitting subsection (5) and substituting the following subsections:

"(5) Where:

   (a)  after 19 September 1985, a taxpayer acquired a legal or equitable
        estate or interest (other than a life interest) in land;

   (b)  no dwelling was erected on the land at the time when the taxpayer
        acquired that estate or interest;

   (c)  a dwelling was erected on the land by the taxpayer after that time;

   (d)  the dwelling became the sole or principal residence of the taxpayer
        for the purposes of this Part as soon as practicable after the
        dwelling was erected and continued to be the sole or principal
        residence of the taxpayer for the purposes of this Part for not less
        than 12 months; and

   (e)  the taxpayer makes an election in accordance with subsection (5A) that
        this subsection apply in relation to the dwelling;
the following provisions have effect:

   (f)  the period during which the dwelling was the sole or principal
        residence of the taxpayer for the purposes of this Part includes:

        (i)    the period on and from the date on which the taxpayer acquired
               the estate or interest to and including the date on which the
               dwelling was erected (other than any part of that period during
               which the taxpayer was the dependent child of another
               taxpayer); or

        (ii)   the period of 4 years immediately before the dwelling became
               the sole or principal residence of the taxpayer (other than any
               part of that period during which the taxpayer was the dependent
               child of another taxpayer);
whichever period (in this subsection called the 'construction period') is the
shorter period;

   (g)  no other dwelling shall be treated as the sole or principal residence
        of the taxpayer during the construction period.

"(5A) An election for the purposes of subsection (5) shall be lodged with the
Commissioner on or before the date of lodgment of the taxpayer's return of
income of the later of the following years of income:

   (a)  the year of income in which the dwelling first became the sole or
        principal residence of the taxpayer for the purposes of this Part;

   (b)  the year of income in which this subsection commenced;
or within such further period as the Commissioner allows.".