I have lived in my primary residence for 5+ years, and I am planning on doing a knockdown/rebuild, and possibly selling once completed (without moving back in).
Am I exempt from CGT, or will I need to pay tax, and what portion would I need to pay the tax on?
Guidelines on this scenario is in link below. As stated in link, to be CGT exempt you need to
"move into the dwelling as soon as practicable after it is finished and continue to use it as your main residence for at least 3 months".
You also need to move in within 4 years of demolishing your dwelling.
Building or renovating your home | Australian Taxation Office
So answer is no. CGT would be on that period of time after it has been demolished. (i.e. it was not your main residence). If you move out and the dwelling is vacant (or rented) then this period may still be counted as main residence days. This rule is below
Treating former home as main residence | Australian Taxation Office
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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