Hello everyone! In 2010, I purchased a property that served as a rental until early 2017. For the past 7 years, I’ve been living there. Now, the question is: Do I need to pay Capital Gains Tax (CGT) on this property?
The sale of this property would be a CGT event. There is a partial exemption from any CGT to take into account the period the property was your main residence. If the property was not your main residence when you purchased then CGT is calculated by deducting the cost base from the sale price then apportioning the gain for the period the property was rented. This gain is discounted by 50% then added to other assessable income on the tax return and taxed at marginal tax rates. There are 5 elements that make up the cost base. See link. https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/cost-base-of-asset
The calculation is quite complex and to minimize the gain quite a bit of information is required. If the gain is significant then smart tax planning can help reduce any tax liability. (e.g. personal super deductions). Professional tax advice is highly recommended before the sale and to calculate the gain.
The sale of this property would be a CGT event. There is a partial exemption from any CGT to take into account the period the property was your main residence. If the property was not your main residence when you purchased then CGT is calculated by deducting the cost base from the sale price then apportioning the gain for the period the property was rented. This gain is discounted by 50% then added to other assessable income on the tax return and taxed at marginal tax rates. There are 5 elements that make up the cost base. See link. https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/cost-base-of-asset
The calculation is quite complex and to minimize the gain quite a bit of information is required. If the gain is significant then smart tax planning can help reduce any tax liability. (e.g. personal super deductions). Professional tax advice is highly recommended before the sale and to calculate the gain.
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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