No MRE on the period it was rented out.
"If:
- there is a delay moving in because of illness or other unforeseen circumstances – your home is still exempt, provided you move in as soon as the cause of the delay is removed (for example, when you recover from the illness)
- you can't move in because the property is being rented to someone – the property doesn't become your main residence until you move in"
https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home/moving-to-a-new-main-residence
I think you're misunderstanding how the former main residence rules work. The criteria is that it was your main residence, it doesn't necessarily mean it was your main residence the whole time. The 6 year rule starts when it stops being your main residence and you use the property to produce income; indefinite when not used to produce income.
The main residence requirement from the state generally isn't relevant to MRE on property.
Generally apply MRE to one eligible property at any given day. (apart from 6 month moving rule with certain conditions). If there's multiple eligible properties, you can pick which property gets the MRE - your choice is locked in by what you declare in tax return.
@YellowPotato
thank you
i had the impression there was some sort of clause that it had to be your main residence from the start to be able to qualify for any principal residence exemption (partial) . I understand , I think how it works but I am not sure if I am allowed to do it because I had tenant Initially
i understand that while the tenants are there at the start I can’t apply the exemption but can I apply the exemption once I move in and it becomes my residence?
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