Author: Jaana(Newbie)Newbie 20 May 2026
Hi,
I am getting such mixed advice from my accountant.
I bought and lived in my first and only property December 2018 - June 2020.
I moved out June 2020 renting it out continuously until mid August 2026.
I am moving back in once the tenants lease expires and there is a 2 month overlap past the 6 years.
I need to clearly know if I rent it again in the future whether I am eligible for another 6 years CGT exemption going forward?
I’ll be moving in for minimum 1 year or longer with the plan to travel and work away in late 2027/2028.
I know there will be a CGT event for the 2 months and how that’s calculated from the 2020 date.
I just need to know what the future holds as far as renting it again in the future, as my accountant said I can’t use the 6 years again after exceeding it , and I don’t believe that is accurate?
Thank you
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2 replies
New accountant time :-)
As YellowPotato said, you can reset your 6 year clock if you are genuinely making it your main residence.
In case your accountant missed other things:
1) the cost base of your property essentially got "reset" when you first started renting it out, so you will need a retrospective market valuation for that point in time (cost of obtaining the valuation is tax deductible)
2) capital improvements while it's rented out are obviously added to that reset cost base but also, holding costs while you live in it - interest, rates, building insurance (not contents). It's a tiny percentage of the time you owned it that will be exposed to CGT but every bit helps!
3) repairs conducted after the tenant moves out can still be deductible if they relate to damage or wear and tear that occurred during the period it was rented out AND it is done in the financial year it ceased to be rented. So if your tenants move out in August, you have until June 2027 to do any repairs or maintenance relating to the time they were there but if they break lease and move out in June then you only have until 30 June 2026
