Description

The bright-line test and the main home exclusion have been completely rewritten. Residential properties acquired on or after 27 March 2021 are now subject to a 10-year bright-line period unless the property qualifies as a “new build”. Changes in the use of a family home must be considered in determining the extent to which the “new” main home exclusion applies. Rollover relief from the bright-line test now applies to certain transactions (including some transfers of residential property to and from trusts).

This webinar considers a number of issues that arise under the bright-line test and the RLWT rules. Issues arising under the new 10-year bright-line test include the calculation of the bright-line period where land has been subdivided and in other unusual situations, the application of the main home exclusion where bare land is acquired and the family home is erected on that land, the application of the main home exclusion to trusts, and the circumstances in which rollover relief from the bright-line test applies. Issues arising under the RLWT rules include complications in determining whether a landowner is an offshore person, particularly where the landowner is a trust.

ORIGINAL BROADCAST DATE

2 June 2022

LEARNING OUTCOMES

You will:

• Learn about when the bright-line test applies, including whether the sale of residential land is subject to the 5-year or 10-year bright-line period
• Understand how to determine the date of acquisition of property and the calculation of the bright-line period
• Know how the main home exclusion applies to trusts, along with recent changes to the main home exclusion
• Learn about when the other exclusions to the bright-line test will apply, including when rollover relief applies to transfers to and from trusts
• Understand when the RLWT forms need to be completed
• Learn when RLWT will apply and how to calculate the amount of RLWT
• Know when a trust will be treated as an offshore RLWT person

SUITED TO

Accountants of all levels, property lawyers and conveyancers, and others who advise clients on land transactions.

PRESENTER

Stephen Tomlinson, Principal, Tomlinson Law.