All Topics / General Property / PPOR definition ?

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  • Profile photo of fxdaemonfxdaemon
    Participant
    @fxdaemon
    Join Date: 2013
    Post Count: 114
    July 4, 2016 - 5:36 pm

    Hi experts,
    I know this sounds like a simple question regarding what PPOR is.

    However, from SRO & ATO perspective, how do they determine the PPOR status ?
    Which of the following is/are used in their consideration?

    – AEC registration address?
    – utility account holder & address?
    – fire policy insured name & address?
    – rates notice name & address?

    Or none of the above?

    Thanks,
    FXD

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 4, 2016 - 6:06 pm

    You have to distinguish the 2. Income tax uses the term ‘main residence’ whereas the land tax legislation refers to ‘principle place of residence’ (in NSW anyway). Different rules resulting in different outcomes.

    The main residence/PPOR is basically the place you reside in as your home.

    Those items listed may be used as evidence, but just changing your address doesn’t make a place the main residence if you remain living elsewhere.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of fxdaemonfxdaemon
    Participant
    @fxdaemon
    Join Date: 2013
    Post Count: 114
    July 5, 2016 - 2:53 pm

    Hi Terry
    Thanks for your explanation to help me narrow the question further.

    My question arises from the context that if I need to transfer my ex-PPOR to my brother, both CGT and stamp duty will apply I assume.
    However, my brother has already been living in the property for about 7 years or so and I have been absent for same duration.

    No question about SD as bro will pay as per any other open market sale transaction.

    CGT wise is confusing. My name on current title, my name on some of existing utility bills, insurance & rate notice.
    Should I better off just move back to the same property for 12 months to “clean” up the confusion and then do the transfer instead?
    That way, the property is re-purposed as my PPOR and for the period of 7 years of so when I didn’t live there (as proved by AEC name
    registration) it wasn’t rented out as such but I allowed bro to live in it.

    Will the re-purpose of PPOR then exempt it from CGT on my part?

    BTW, I am assuming that with the above off-market transfer scenario CGT is still payable.

    Thanks,
    FXD

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 5, 2016 - 3:02 pm

    It doesn’t matter about your brother – but when you moved out.
    Are you claiming any other property as the main residence? If not then you might be able to claim an exemption for part of the time.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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