Hi, I would like to convert my PPOR to rental property. I understand there is a 6 year rule that applies to avoid CGT. I would like to know if during the 6 year period while the property is generating income, is it possible to claim Mortgage interest tax deductible? Note: the property remains PPOR and I have no other property.
I would like to know if during the 6 year period while the property is generating income, is it possible to claim Mortgage interest tax deductible?
Yes, but you should still get a valuation when first rented in case you exceed 6 years.
I would like to know if during the 6 year period while the property is generating income, is it possible to claim Mortgage interest tax deductible?
Yes, but you should still get a valuation when first rented in case you exceed 6 years.
Hi @transac,
If you have a main residence and start to rent it out, you can use home first used to produce income rule as the market value for your property. If you don't own any other property and you're an Australian resident for tax purposes, you can continue the main residence exemption for up to 6yrs without incurring CGT. You can also look at our rental expenses' webpage for guidance on what you can claim while your property is being rented out, or genuinely available for rent.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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