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June2022(Newbie)Newbie
3 June 2022

Could someone help me clear up my confusion about CGT on this case?


A Mother in her late 50s and her son (& his partner) are thinking of buying a house together for both to live-in.


Both are renting and has no properties.


Mother will put her 550K cash (her saving) and Son will take out a home loan up to 600K.


They intend to make a family agreement that the property be in Son's name and Mother gets a right to live in it for life.


As Mother has not yet reached the pension age and has no disabilities, 


does CGT apply to this arrangement? If so, how to calculate?



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1,085 views
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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
4 June 2022

A life tenancy is not ownership, so it will be the son's property.


The property will be exempt from CGT as long as it is main residence.

This is not changed by other family members living with him in the property, and long as his partner does not own another property that they wish to treat as main residence.


Consideration should be given to what happens if the arrangement ceases to be as happy as planned.


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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
4 June 2022

A life tenancy is not ownership, so it will be the son's property.


The property will be exempt from CGT as long as it is main residence.

This is not changed by other family members living with him in the property, and long as his partner does not own another property that they wish to treat as main residence.


Consideration should be given to what happens if the arrangement ceases to be as happy as planned.


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Mother and Son buying a house together - CGT | ATO Community