I bought a house in Perth in Nov 2007 and moved overseas in Jan 2011. While I was overseas the property was rented out. The tenant is leaving in Jan 2025 and I am returning to Perth to live in the property. How long do I have to live in the property to avoid capital gains tax?
As the property was rented for longer than 6 years then there will always be capital gains tax implications on it's sale. If you intend to dispose of the property before you die, then the only way you can avoid the disposal (sale or transfer) being a CGT event for you is to transfer the property to your spouse after a marriage breakdown. Link explains this
When the relationship breakdown rollover applies | Australian Taxation Office
This may be a bit drastic.
Whether you pay any tax on a gain is another matter. This would depend on how long you have the property as your main residence, what the property market does (it may tank and you sell at a loss), what other capital losses you may have over the years that can be offset against any gain, what your other assessable income is for the year in which you sell and whether you have actively tax planned for the sale (e.g. a large contribution to super and claiming a tax deduction).
What ever you do make sure you keep all your property records.
As the property was rented for longer than 6 years then there will always be capital gains tax implications on it's sale. If you intend to dispose of the property before you die, then the only way you can avoid the disposal (sale or transfer) being a CGT event for you is to transfer the property to your spouse after a marriage breakdown. Link explains this
When the relationship breakdown rollover applies | Australian Taxation Office
This may be a bit drastic.
Whether you pay any tax on a gain is another matter. This would depend on how long you have the property as your main residence, what the property market does (it may tank and you sell at a loss), what other capital losses you may have over the years that can be offset against any gain, what your other assessable income is for the year in which you sell and whether you have actively tax planned for the sale (e.g. a large contribution to super and claiming a tax deduction).
What ever you do make sure you keep all your property records.
Keeping records for property | Australian Taxation Office
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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