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Done_deal(Newbie)Newbie
13 May 2026

I have a property (Property A) that I have stayed as my primarily residential for 5 years and then leased out for more than 8 years. During this time, I bought a property in another state as my primarily residential (property B).


With the introduction of the new CGT tax, it has confused me on my options as I contemplate to retire next year.


[1] If I sell my Property B will I be subjected to any CGT?

[2] My intent is to move back to Property A after selling Property B.

[3] Should I stay in Property A after my retirement, but my health deterioriates and I sell it to move in with my daughter, will Property A be subjected to CGT under the new rule?


Thanks.

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2 replies
34 views
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All replies

YellowPotato(Taxicorn)Taxicorn
13 May 2026

Best to see a tax agent or ask ATO's technical advice


  1. Depends on your decision and if you have MRE available. It is eligible for MRE, but if you have MRE available to apply or should you apply it is a different question, ask a financial advisor or tax agent
  2. Intent doesn't matter. Action is what matters
  3. Ask a financial advisor. Not sure what you mean by new rule, I don't think there were any proposed changes to main residence exemption. I'm assuming you rented it out 8 years and didn't move back in at any point during the 8 years, then Property A is already exposed to tax because you exceeded the 6 year rule


General information:

  • MRE is applied to one eligible property on any given day. When there's more than one eligible property on a given day, a choice needs to be made, the properties that don't have MRE are exposed to CGT. Exception is the 6 month moving rule, but not likely to apply to your situation because you rented out the former main residence
  • Couples share one full MRE, if choose different properties for MRE the effectiveness of the MRE may be reduced

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Is there CGT on a residential property that was rented out but I am moving back in to? | ATO Community