Apologies if this has been asked before, I just want to be certain before deciding whether to sell one of my investment properties.
I own two properties (A and B). I have lived in Property A since it was built in 2012. I bought Property B in Oct 2017 as an investment and rented it from day one until I moved into it in March 2019, making it my main residence.
While living in B, I rented out A. In March 2021 I moved back into A and have been living there since, while Property B has been rented out again.
I only lived in B for about two years, and I plan to sell B in 2026, meaning the second rental period is under 6 years. I do not plan to sell Property A.
Can you please confirm whether I can still use the 6‑year absence rule for Property B, and whether only the first rental period (before I lived in B) is taxable for CGT purposes?
Property A summary:
- Built 2012, lived in as main residence
- Rented out March 2019 – March 2021
- Moved back in March 2021 and still living there
- Intend to keep long‑term
Property B summary:
- Purchased Oct 2017 as investment
- Rented Oct 2017 – March 2019
- Main residence March 2019 – March 2021
- Rented again from May 2021 to present
- Planning to sell in 2026
Thank you.
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3 replies
Author: Taxduck(Taxicorn)Taxicorn 9 Apr 2026
Under the 6 year rule you are able to continue to treat your home as your main residence after you move out. Up to 6 rented years and indefinitely if vacant. (i.e. not rented)
Rule is below
Treating former home as main residence | Australian Taxation Office
How many other properties you own, or where you move to, doesn't change the application of the rule, apart from only being able to treat one property as your main residence (so CGT exempt) at any point in time.
After you move out of property B you can continue to treat the property as your main residence. (as under the 6 year rule) for any period of time you choose. As stated in above link
"You can choose when to stop the period covered by your choice. For example, if you rented it out for 5 years, you can choose to treat the property as your main residence for 3 years."
For the CGT calculation see link below
Partial exemption | Australian Taxation Office
Thank you very much, just to confirm my understanding: even if a property was rented first before I ever lived in it, once I move in and establish it as my main residence, I can still use the 6‑year absence rule for any later rental period, as long as I don’t claim the main‑residence exemption for another property during the same period.
