Property Sale After Subdivision - Brightline Test

Question

A family trust has owned a family home and a holiday home since 2000. In Oct 2017, the trust started building a 200m2 dwelling (without subdividing the land) on the land where the holiday home is. Please advise whether the new dwelling is subject to Bright-line Test.

Answer

The brightline test was extended from 29 March 2018 to 5 years so if the dwelling is sold post October 2019 the brightline test should not apply.