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JBP(Initiate)Initiate
19 May 2023

Can you please confirm what is required to establish our property as our "Main Residence" first, before renting out our property? @ BlakeATO


We purchased our property in 2021, and shortly after moving in, we made it available on AirBnB. We leave our personal belongings in the property, but we move out and travel for work sometimes, so we rent out our whole property to paying guests. This is the only property we own.


I have since become aware there may be CGT implications when we sell. Can you please confirm what is required to establish our property as our "Main Residence" first, before renting out our property? As my understanding, is that we should be eligible to apply for the "6 year leave of absence rule" to be exempt from CGT, as this is our primary place of residence.


Thank you!

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581 views
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Most helpful reply

AriATO(Community Support)Community Support
23 May 2023

Hi @JBP


Establishing main residence doesn't have a set timeframe because it depends on a few factors. But if you look at other rules related to MR you'll see when you move to a new residence you need to have lived in your old home as your MR for a continuous period of 3 months. But again, this alone wouldn't determine establishing MR.


How long did you live in your current property before it was used as an AirBnB? I think if you have concerns then you can always get specific advice about your circumstances from us. Our website has more details about tailored technical assistance.


But you're correct. There is such thing as the 6-year rule. You can treat your property as your MR whilst you're not living in it. This will exempt you from CGT when you sell. You can read more about how treating your former home as your main residence works on our website.



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Most helpful reply

AriATO(Community Support)Community Support
23 May 2023

Hi @JBP


Establishing main residence doesn't have a set timeframe because it depends on a few factors. But if you look at other rules related to MR you'll see when you move to a new residence you need to have lived in your old home as your MR for a continuous period of 3 months. But again, this alone wouldn't determine establishing MR.


How long did you live in your current property before it was used as an AirBnB? I think if you have concerns then you can always get specific advice about your circumstances from us. Our website has more details about tailored technical assistance.


But you're correct. There is such thing as the 6-year rule. You can treat your property as your MR whilst you're not living in it. This will exempt you from CGT when you sell. You can read more about how treating your former home as your main residence works on our website.



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Main Residence and AirBnB: The 6 Year Leave of Absence Rule and CGT Implications | ATO Community