Capital Gains Tax implications - own home with some rooms rented out

 Author: RachelATO(Community Moderator)Community Moderator

ATO Certified Response20 May 2026

Hi @arhnelson,

When you sell your property, CGT will apply based on how it was used over time, as your main residence exemption won’t fully apply due to renting part of it.

For 2011 to 2015, when you rented out rooms, you’ll need to apportion the gain based on the floor area rented (including a share of common areas) and the time it was rented.

For 2010 to 2011 and 2015 to 2023, when you lived there on your own, you can generally claim the full main residence exemption for those periods.

From 2023, when you rent out the whole property, you may be able to continue treating it as your main residence for up to 6 years under the absence rule, meaning that period can still be exempt (if you don’t nominate another main residence).

When you sell, the gain is worked out across all these periods and adjusted accordingly. If you’ve owned the property for more than 12 months, you can also apply the 50% CGT discount to any taxable portion.

Make sure you keep records of rental periods and how you worked out the proportions.

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