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RubyR(Initiate)Initiate
2 June 2026

I am a 68-year-old woman seeking advice regarding the capital gains tax implications of a property I have recently sold.

Some years ago, I purchased a house in an area I could afford so that I would have secure housing for the future. As I was working and needed to stay closer to my employment and family, I rented accommodation in that area and leased out the property I owned. The rental income from my property was used to cover the rent I was paying where I lived.

I have now sold that property and intend to purchase a home to live in as I move into retirement. Given current property prices, I will need to use the full proceeds from the sale to buy another home outright, without borrowing.

I have very little super or savings. As this was the only property I owned, could you please advise whether I am liable for capital gains tax on the sale? This property was not an investment property as such, just an affordable way to secure a roof over my head by myself for this time of my life.

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4 replies
22 views
4 replies

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Most helpful reply

YellowPotato(Taxicorn)Taxicorn
2 June 2026

Would be best you see a tax agent


As this was the only property I owned, could you please advise whether I am liable for capital gains tax on the sale?

  • Yes, disposal of property triggers CGT event
  • I don't see what exemption or rollover you could apply to the CGT event
  • So you would need to do a CGT calculation


This property was not an investment property as such, just an affordable way to secure a roof over my head by myself for this time of my life.

  • How you used the profit from the property has no effect on CGT liability

All replies

Most helpful reply

YellowPotato(Taxicorn)Taxicorn
2 June 2026

Would be best you see a tax agent


As this was the only property I owned, could you please advise whether I am liable for capital gains tax on the sale?

  • Yes, disposal of property triggers CGT event
  • I don't see what exemption or rollover you could apply to the CGT event
  • So you would need to do a CGT calculation


This property was not an investment property as such, just an affordable way to secure a roof over my head by myself for this time of my life.

  • How you used the profit from the property has no effect on CGT liability

KaraATO(Community Support)Community Support
2 June 2026

Hi @RubyR,


You may be liable for capital gains tax (CGT) when you sell your property, depending on whether you’re eligible for the main residence exemption.


Under the main residence exemption, you generally don’t pay CGT when you sell your home. However, you may have to pay CGT if the property:

  • wasn’t your main residence for the full period you owned it, or
  • was used to produce income, such as being rented out.

In some cases, the 6-year rule may allow you to treat the property as your main residence for a period while it’s rented, if certain conditions are met.


In your situation, you mentioned renting the property while living elsewhere. This means you may not be fully exempt from CGT, but it will depend on your full circumstances, including whether the 6-year rule applies.


When you sell the property, you’ll need to work out your capital gain or loss based on the difference between your cost base and the sale price. If you’ve held the property for at least 12 months, you may be eligible for the CGT discount.


You'll need to calculate your capital gain or loss and report it in your tax return. Our CGT calculator can help you work out your capital gain and the CGT discount that may apply. You can also find detailed info about CGT when selling your rental property on our website.

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