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SuperRavioli200(Newbie)Newbie
18 Apr 2026

Okay I really need some guidance on this because I can't find any straight answer.


I have owned a property for a few years now and have had a housemate during that time. I know this makes my property partially an IP and that the IP portion (calculated using rented room and 50% of common area) is CGT applicable.


I'm now looking to rent the whole place out, fully turn it into an IP. I plan on then renting somewhere else and not buying a new ppor. Moving forward, am I applicable for the 6 year CGT exemption on a former ppor main residence? If so is the whole property exempt for the next 6 years or only the portion that wasn't CGT applicable when I had a housemate?

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3 replies
70 views
3 replies

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Taxduck(Taxicorn)Taxicorn
19 Apr 2026

Currently, while you have a housemate who is paying you rent only the portion you are not renting is your main residence. So if you move out and rent the whole dwelling then only that portion that was your main residence can continue to be your main residence under the 6 year rule.

For the whole dwelling to be considered your main residence under the 6 year rule, the whole dwelling needs to be your main residence before you move out. For this to happen you will need to cease renting out any part of your home and reestablish the whole dwelling as your main residence.

Guidelines below (see former home used for income before you move out)

Treating former home as main residence | Australian Taxation Office

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
19 Apr 2026

Currently, while you have a housemate who is paying you rent only the portion you are not renting is your main residence. So if you move out and rent the whole dwelling then only that portion that was your main residence can continue to be your main residence under the 6 year rule.

For the whole dwelling to be considered your main residence under the 6 year rule, the whole dwelling needs to be your main residence before you move out. For this to happen you will need to cease renting out any part of your home and reestablish the whole dwelling as your main residence.

Guidelines below (see former home used for income before you move out)

Treating former home as main residence | Australian Taxation Office

SuperRavioli200(Newbie)Newbie
22 Apr 2026

Does that mean if I were to say stop renting out my spare room for several months, that would reestablish the whole place as my main residence and I could then use the 6 year cgt exemption on the whole property moving forward if turned into an IP? That link doesn't explicitly mention my type of scenario, only that you can "reset" the 6 year rule if moving back before renting out again.

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6 year CGT exemption on former ppor with housemate | ATO Community