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Ashley123(Enthusiast)Enthusiast
29 Nov 2021

I have a unit that I lived in it since I bought it. I want to rent it for the next 10 years. To avoid Capital Gains Tax I want to live in it after 5 years of renting it, and then rent it again for another 5years. How long should I live in the house between the 2 periods of absence (renting the home)? For example if I rent it for 5 years and then live in it for 3 months and rent it again for few years. That 3 months is acceptable? Or I have to live in it more than 3 months (for example couple of years)? This is the link from ATO that shows my question, and example 4 (Jez) is exactly my situation : Treating former home as main residence | Australian Taxation Office" https://www.ato.gov.au/Individuals/Capital-gains-tax/Property-and-capital-gains-tax/Your-main-residence-(home)/Treating-former-home-as-main-residence/

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Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response30 Nov 2021

Hi @Ashley123


We don't have a set time for when you can consider having re-established the property as your home. We say three months to six months as a good rule of thumb, especially because we use this in the eligibility for the "moving to a new main residence" rules.


Remember there are multiple factors we look at for determining when it becomes your home, too. It's considered your main residence if:

  • you, your spouse, and your dependents live in it
  • your belongings are kept there
  • it is the address your mail is delivered to, and is on the electoral roll
  • utilities are connected (and in your (and your spouse's) name(s)).

It isn't just about how long you sleep in the property or how long your mail is sent there, so be sure to consider the full list.


You can read about what is a main residence on our website.

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Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response30 Nov 2021

Hi @Ashley123


We don't have a set time for when you can consider having re-established the property as your home. We say three months to six months as a good rule of thumb, especially because we use this in the eligibility for the "moving to a new main residence" rules.


Remember there are multiple factors we look at for determining when it becomes your home, too. It's considered your main residence if:

  • you, your spouse, and your dependents live in it
  • your belongings are kept there
  • it is the address your mail is delivered to, and is on the electoral roll
  • utilities are connected (and in your (and your spouse's) name(s)).

It isn't just about how long you sleep in the property or how long your mail is sent there, so be sure to consider the full list.


You can read about what is a main residence on our website.

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Avoiding Capital Gains Tax on rented property | ATO Community