Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
Rigby(Initiate)Initiate
16 Dec 2024

Hey there,


I've read a few posts and ATO pages (here, here) and would like to verify my understanding. Example scenario:

  1. 2024 - purchase home as primary place of residence (PPOR) for $500k
  2. 2029 - move abroad. Rent unit out.
  3. 2039 - move back to AU. Live elsewhere, continue renting unit out.
  4. 2044 - sell unit for $1m.


My understanding is:

  • 6 year PPOR residence can still be applied. So property appreciation from 2024 - 2035 is exempt from CGT.
  • Period of 2035 - 2039 (: subject to full CGT. No discount is applied.
  • Period of 2039 - 2044: CGT discount applies (to be pro rated).
  • Total capital gain = $500k.
  • The capital gain subject to tax = $500k * ((4/20) + (5/20)*0.5) = ~$162.5k


Is this correct? Or, is the 6 year PPOR exemption not applied here? Which would make the capital gain subject to tax = $500k * ((10/20) + (5/20)*0.5) = ~$312.5k.


Thanks in advance!

236 views
3 replies
236 views
3 replies

Most helpful response

Most helpful reply

Taxduck(Taxicorn)Taxicorn
16 Dec 2024

  • "6 year PPOR residence can still be applied. So property appreciation from 2024 - 2035 is exempt from CGT."

No. Deemed acquisition date is market value as at date first rented. - 2029. CGT is calculated by deducting cost base (market value 2029 is element 1 of cost base) from sale price to get the gain. Gain is then proportioned over period the property was neither your main residence or considered to be your main residence. (as under 6-year rule) - see when 6 years exceeded in link.

Treating former home as main residence | Australian Taxation Office

The guidelines on the 50% CGT discount state you receive the full 50% discount if you are an Australian resident when a CGT event occurs. (so no pro-rata of discount whilst a foreign resident)

CGT discount | Australian Taxation Office


All replies

Most helpful reply

Taxduck(Taxicorn)Taxicorn
16 Dec 2024

  • "6 year PPOR residence can still be applied. So property appreciation from 2024 - 2035 is exempt from CGT."

No. Deemed acquisition date is market value as at date first rented. - 2029. CGT is calculated by deducting cost base (market value 2029 is element 1 of cost base) from sale price to get the gain. Gain is then proportioned over period the property was neither your main residence or considered to be your main residence. (as under 6-year rule) - see when 6 years exceeded in link.

Treating former home as main residence | Australian Taxation Office

The guidelines on the 50% CGT discount state you receive the full 50% discount if you are an Australian resident when a CGT event occurs. (so no pro-rata of discount whilst a foreign resident)

CGT discount | Australian Taxation Office


Rigby(Initiate)Initiate
16 Dec 2024

I see several posts (like [removed by moderator]) that say CGT should be pro rata, even if you're an AU resident when selling. Is that incorrect?

Featured articles

Renting out all or part of your home? What to include in your tax return

15 Apr 2026 · 4 min read time

How to work out your tax residency

15 Apr 2026 · 8 min read time

Top liked users

  1. Taxduck

    (Taxicorn)

    1288 likes

  2. Bruce4Tax

    (Taxicorn)

    1117 likes

  3. YellowPotato

    (Taxicorn)

    340 likes

  4. Ken_Oath

    (Master)

    199 likes

  5. knaresbro

    (Devotee)

    141 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    3397contributions

  2. Taxduck

    (Taxicorn)

    2829contributions

  3. YellowPotato

    (Taxicorn)

    903contributions

  4. knaresbro

    (Devotee)

    295contributions

  5. TobyJDodd

    (Devotee)

    176contributions

Loading
How does the PPOR 6-year rule if non-resident for longer than 6 years during ownership period? | ATO Community