Question 1

Stuart purchased his home in Meadowbank on 1.7.2006. He lived in the home for 2 years and then was posted overseas to New Zealand for 10 years, during which time he leased the house to tenants. On his return, he continued to live in the home until it was sold on 30 June 2020. Advise Stuart whether he is entitled to the full or partial main residence exemption embodied within the capital gains tax legislation. Question 2

Bill and Brittanys father, Stuart, died in January 2021. Under Stuarts will, Stuart gave Bill his investment property in Bathurst and his holiday house in Lithgow to Bill. Brittany was given Stuarts principal place of residence at Meadowbank. Stuart acquired the Bathurst property in 1980 for $200,000 and acquired the Lithgow property in 1995 for $400,000. At the date of Stuarts death, the Bathurst property was valued at $1,000,000 and the Lithgow property $800,000. Bill wants to sell both properties. Advise Bill on the CGT consequences of following through with the sale of both properties.

Question 3

Evaluate the following statement in the context of the alienation of personal services income regime contained in the ITAA 1997: Why is it important under the personal services income rules to determine whether a Personal Services Business is being conducted

Question 4

In your own words, synthesise the main elements that constitute the Results Test contained within S87-18 of the ITAA 1997