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PaulC1984(Newbie)Newbie
19 Nov 2024

Hi All Tax Wizards,


I have a property that started off as my primary place of residence and then held onto it when we moved into another property. I bought the property in 2004 and it became an investment in 2013 and has been since. I am looking at possibly selling it to reduce debt to help with the purchase of a new home for my family that will become our primary place of residence. Is there a way to reduce/remove CGT tax from this property prior to selling? I have another property that we have also done the same with but if we do sell it we will be inside the 6 year threshold for that one. Will this also have a bearing on the first question?


I am not against paying my fair share in tax but would like to reduce it as much as possible.

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271 views
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Taxduck(Taxicorn)Taxicorn
20 Nov 2024

The only way this property can be exempt from CGT is if you had rented it for a total period of 6 years or less. (if you never moved back into the dwelling after renting it out). Link explains the 6-year rule

Treating former home as main residence | Australian Taxation Office

See information when 6-year limit is exceeded.

As CGT is not a separate tax but any gain is added to other assessable income, good tax planning can help (i.e. reduce your other assessable income - e.g. personal super deductions)

With your other property, be aware you can only have one property that can be considered as your main residence (so exempt from CGT) at any one time.

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
20 Nov 2024

The only way this property can be exempt from CGT is if you had rented it for a total period of 6 years or less. (if you never moved back into the dwelling after renting it out). Link explains the 6-year rule

Treating former home as main residence | Australian Taxation Office

See information when 6-year limit is exceeded.

As CGT is not a separate tax but any gain is added to other assessable income, good tax planning can help (i.e. reduce your other assessable income - e.g. personal super deductions)

With your other property, be aware you can only have one property that can be considered as your main residence (so exempt from CGT) at any one time.

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How to reduce CGT on longer term investment property | ATO Community