CGT and subdivision

 Author: Taxduck(Taxicorn)Taxicorn

3 May 2026

No one will know until a CGT event occurs, which will be the sale or disposal date of Block B.

As Block B will eventually become your main residence then that period will be exempt from CGT.

Below is how a partial main residence exemption is calculated.

Partial exemption | Australian Taxation Office

Value of Block B at date of subdivision is not required for the capital gain calculation.

If Block A is to be exempt from CGT under main residence exemption then Block B will be subject to CGT from purchase date up to the date you sell Block A. The period after that may be considered a main residence period as long as construction of the dwelling is completed within 4 years.

Constructing, renovating or repairing a dwelling on land you already own | Australian Taxation Office

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 Author: mary1(Newbie)Newbie

4 May 2026

Thankyou for your reply. I think I have few gaps in my understanding - can I pls ask a follow-up question?

"Value of Block B at date of subdivision is not required for the capital gain calculation." 

Maybe I don't understand CG then - I thought the CG was calculated:

Puchase price of total block divided into house block A and future subdivided block B = ~450K Block B

As an empty block, post-subdivision, valued at 1.1mil

1.1 - 450K - subdivision costs = CG

How is it calculated without those figures?

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