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SetForLife(Newbie)Newbie
19 May 2025

My husband and I purchased our unit in 2001 for $176,000 and rented it out, we then moved into the unit as our PPOR in 2014 and have resided in the unit to the present day (value of the property in 2014 would have been approximately $375,000)

We are currently under a development sale and the sale price will be much higher than the current market price.

Does the ATO allow a retrospective valuation of the 2014 market price or allow an exception for this to be used in a CGT calculation? It seems very unbalanced with the CGT calculator that we would have to pay CGT on the large gain that will have occurred in the 11 years we have lived as PPOR in the unit.


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3 replies
397 views
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Taxduck(Taxicorn)Taxicorn
19 May 2025

You appear to misunderstand the calculation. No CGT on main residence period. Calculation is the following:

Sale price - cost base = gain x days property not main residence/days of ownership.

So calculate the gain on the property from purchase date till sale then proportion the gain by the number of days the property was rented.

Include all ownership costs during period property was your main residence in the cost base.

See elements of cost base

Cost base of assets | Australian Taxation Office

How CGT is calculated is based on tax rules. Same rules for everybody.

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SetForLife(Newbie)Newbie
20 May 2025

Thanks Taxduck. I do understand the calculation and accordingly we are to pay 59% CGT. The fact is that the large gain will be made for the 41% thus far, that we have had it as PPOR (will probably be 50:50% by the time it's to contract). Hence my question.

NikkiATO(Community Moderator)Community Moderator
22 May 2025

Hi @SetForLife,


@Taxduck is right. And it sounds like you’ve understood the CGT calculation rules.


Just to confirm, a market valuation from when the property became your main residence (in 2014) can’t be used in this case – even if the property has increased in value during the main residence period.


This is because the property was first used to produce income. Under the CGT rules, the cost base is the original purchase price plus eligible costs.

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Can A Retrospective Valuation be used in a calculation of CGT on a property sale | ATO Community