Summary: Capital gains tax law allows homeowners to have one principal residence as exempt. A proposal to demolish the family home and build two new homes, selling one and living in the other, could be subject to both capital gains tax and goods and services tax. Proposing to live in one house for a period, sell it and then move into the other may not be enough to avoid tax liabilities.
Key take-out: The tax act contains a general anti-avoidance provision, designed to catch anyone doing something in a bid to reduce their tax.
Key beneficiaries: SMSF trustees and superannuation accountholders. Category: Superannuation.