Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
Wilapark(Newbie)Newbie
29 May 2025

Hi,

I built a house in 2015, and moved in right away, lived there for 18 months, and moved to another state(May 2017). The property then was rented out for 6 years and 8 months and then it was sold (Jan 2024).

My accountant is applying 6 year absence rule, but he says as I didn't own the property for at least 1 year since end of 6 year up until property disposal (Sale) date (CGT event happened 8 months after the end of 6 year absence).


Is this right?

I can't find anything on ATO website to support this.

Thanks for your help

391 views
12 replies
391 views
12 replies

All replies

Wilapark(Newbie)Newbie
29 May 2025

My accountant is applying 6 year absence rule, but he says as I didn't own the property for at least 1 year since end of 6 year up until property disposal (Sale) date (CGT event happened 8 months after the end of 6 year absence), so I can't apply for %50 CGT discount.

Taxduck(Taxicorn)Taxicorn
29 May 2025

From ATO site

"For an asset to qualify for the CGT discount you must own it for at least 12 months before the 'CGT event' happens"

CGT discount | Australian Taxation Office

Cost base deemed purchase date will be market value of the property as at date it was first rented.

Using your home for rental or business | Australian Taxation Office

Date of this was May 2017.

So eligible for 50% discount.

Liked by Wilapark
Wilapark(Newbie)Newbie
29 May 2025

Thanks for your reply!

What my accountant said:

"Please also note that unfortunately you will not be eligible for CGT discount on the disp

osal of the property, as at the end of the 6 year rule (i.e., 27/5/2023, as the property rented out from 27/5/2017) up until the property disposal date was less than 12 months. As per ATO, for an asset to qualify for the CGT discount you must own it for at least 12 months before the 'CGT event' happens."


Is there any reference/document to support that I'm eligible for the %50 discount? Or should I cantact ATO and discuss the matter with them?

thanks

Featured articles

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

21 May 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)

    1320 likes

  2. Bruce4Tax

    (Taxicorn)

    967 likes

  3. YellowPotato

    (Taxicorn)

    356 likes

  4. Ken_Oath

    (Master)

    199 likes

  5. knaresbro

    (Devotee)

    141 likes

Top contributors

  1. Taxduck

    (Taxicorn)

    2879contributions

  2. Bruce4Tax

    (Taxicorn)

    2831contributions

  3. YellowPotato

    (Taxicorn)

    929contributions

  4. knaresbro

    (Devotee)

    290contributions

  5. TobyJDodd

    (Devotee)

    176contributions

Loading
Property CGT discount eligibility | ATO Community