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sarahjaneoneill(Newbie)Newbie
13 June 2022

Proposed development at primary place of residence.

We are considering building a small home on the same block as our existing primary home. It would be deemed a duplex, as its not large enough to subdivide. ( STCA ).

If we sold the main home (existing) on completion of the build and moved to the new smaller home ( as new primary residence) would we pay CGT on the sale of the main existing home. Alternatively if we chose to sell the new build what would be the tax implications?

1,428 views
4 replies
1,428 views
4 replies

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JodieR_ATO(Community Support)Community Support
14 June 2022

Hi @sarahjaneoneill,


If this does not result in a subdivision with 2 titles, is this an add on to the current main residence, or is it an entirely new building, similar to a granny flat? If it's used for commercial purposes, such as being rented out, then it would be looked at for CGT. Generally the floor space allocated to producing assessable income is used when calculating CGT.


You may wish to speak with a tax agent who can advise you of best options in relation to your circumstances.

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Bruce4Tax(Taxicorn)Taxicorn
14 June 2022

A duplex is a residential building containing two homes that share a common central wall. The pair of homes will either exist on one land title and be owned and sold together, or exist on separate titles and be individually owned and sold.

https://www.realestate.com.au/advice/what-is-a-duplex-and-whats-it-got-going-for-it/


This suggests that the other house cannot be sold separately if the council will not allow a subdivision.



Most helpful reply

JodieR_ATO(Community Support)Community Support
14 June 2022

Hi @sarahjaneoneill,


If this does not result in a subdivision with 2 titles, is this an add on to the current main residence, or is it an entirely new building, similar to a granny flat? If it's used for commercial purposes, such as being rented out, then it would be looked at for CGT. Generally the floor space allocated to producing assessable income is used when calculating CGT.


You may wish to speak with a tax agent who can advise you of best options in relation to your circumstances.

sarahjaneoneill(Newbie)Newbie
14 June 2022

Hi Jodie, this a a completely separate building and will have a seperate title. it is deemed a duplex as the land area is not big enough to subdivide. We Are finding it difficult to get correct information on the CTG if we sell the original home via a tax agnate this is why I have posted I]the question here


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