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PUB00351: Income tax – Application of the s CZ 39 bright-line test to certain family and close relationship transactions

This draft interpretation statement considers the requirements of the bright-line test for residential land in s CZ 39 of the Income Tax Act 2007 and how it applies to certain family and close relationship transactions.  Those family and close relationship transactions are when the ownership of residential land changes from:

  • parents to their child to assist the child with buying their first home
  • one partner to themselves and their new partner, and
  • all the beneficiaries who inherit the land under a will or rules of intestacy to some of the beneficiaries.

The bright-line test under s CZ 39 applies if a person first acquired an estate or interest in residential land on or after 29 March 2018 but before 27 March 2021.

The interpretation statement is accompanied by a fact sheet.

Consultation period: 31 August to 12 October 2022

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