Commonwealth Consolidated Acts Commonwealth Consolidated ActsYou can ignore a capital gain or capital loss you make from a compulsory acquisition (or similar arrangement) that happens only to land that is adjacent to:
(a) a dwelling that is your main residence; or
(b) a dwelling that passed to you as a beneficiary, or trustee, of a deceased estate;
to the extent that the land was used primarily for private or domestic purposes in association with the dwelling.
There is a limit on the maximum area of land covered by the exemption.
Note 1: The exemption may not apply in full if the dwelling:
(a) was not always a main residence; or
(b) was used for the purpose of producing assessable income.
Note 2: The exemption may not apply at all if you are a foreign
resident.