Hi all - previous BAS agent here, so I can generally work a lot of stuff out, but this one is beyond me. I've searched as much as I can in this community and can't find an answer either.
In 2002 I bought a property for $455k as my PPR.
In 2017 my partner and I bought another property as IP and rented it out until 2019.
In 2019 we moved into the IP and declared it as our PPR.
My original PPR was rented out and became an IP to fund my retirement. At this time it was worth approx $1.6m. I didn't have a proper valuation done, but have worked it out from sales of comparable properties. I'm not sure if this comes into the equation or not.
This property is now worth approx $1.8m.
I want to sell the original PPR turned IP, to free up cash. How do I work out the % of the net proceeds which will be subject to CGT? The CGT calculator tool will not tell me as I have had another PPR since 2019.
I have looked at the ATO article 'Your guide to CGT and property' but that does not have any answers either.
Any help you can give would be greatly appreciated, so I know approx how much cash I/we might have going forward.
Thank you,
Belinda
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4 replies
Author: Taxduck(Taxicorn)Taxicorn 11 Jan 2026
"In 2019 we moved into the IP and declared it as our PPR."
For CGT purposes you don't need to declare your main residence (PPR) until a CGT event occurs on a property you own. Over the period you have owned both properties each have been your home however for CGT purposes your home at any one time may well not be your main residence (for CGT).
You have a number of choices. The first property you owned can still be considered your main residence for a period of 6 rented years (more if vacant) after you move out. That rule is below
Treating former home as main residence | Australian Taxation Office
That will take you up to 2025 or beyond. So any gain calculated would be minimal. To calculate this gain the cost base acquisition date is the day it was first rented and the market value of the property at that date would be required. See this rule below.
Using your home for rental or business | Australian Taxation Office
You would then calculate a partial exemption on this period (up to sale date). See below
Partial exemption | Australian Taxation Office
Ownership period here is from date first rented until sale date.
Second choice is to not use the 6 year rule. So gain will be from date property first rented.
Third choice is to use a combination of each property being your main residence at any one time after you had moved into the second property.
If you have no intention of ever selling your current home then the use of the 6 year rule is a no brainer.
Thank you very much. I was under the impression that the 6 year rule did not apply if the property had been rented out for more than 6 years at a time. I'll have a good look at all the info you've provided.
Have a great rest of your Sunday :)
