Hi there
Could you please help us apply the main residence exemption rule in this case?
An oversea student bought a house in 2015 and lived in the house until 2017. During 2015-2017, he was an Australian tax resident. After 2017, he left Australia and never come back. He rented the house out from 2017 to 2021. He sold the house in 2021.
Can he use the property value at 2017 when he first time rented out, as the cost base?
Hey @ Andy77,
For property sold after 30 June 2020, foreign residents are no longer entitled to the main residence exemption for capital gains tax (CGT) unless they satisfy the life events test.
If they meet that criteria as well as the general exemption requirements, then the first element of the cost base would be the market value of the property when it was first used to produce income in 2017.
If the life events test doesn't apply, then the first element would be the price they originally paid for the property in 2015.
Hey @ Andy77,
For property sold after 30 June 2020, foreign residents are no longer entitled to the main residence exemption for capital gains tax (CGT) unless they satisfy the life events test.
If they meet that criteria as well as the general exemption requirements, then the first element of the cost base would be the market value of the property when it was first used to produce income in 2017.
If the life events test doesn't apply, then the first element would be the price they originally paid for the property in 2015.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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