Main Residence Exemption — CGT on Your Home in Australia
How the main residence CGT exemption works in Australia. When your home is exempt, the partial exemption for periods of rental, and how to calculate your CGT liability.
Frequently Asked Questions
Do I pay CGT when I sell my home in Australia?
Generally no — your main residence is exempt from CGT if it was your primary home for the entire ownership period. However, CGT may apply if you used part of the home to produce income, rented it out for any period, or it was not your main residence for the entire time you owned it.
What is the 6-year rule for main residence exemption?
If you move out of your main residence and rent it out, you can continue to treat it as your main residence for up to 6 years for CGT purposes, provided you do not treat another property as your main residence during that time.
How is CGT calculated if I rented my home for part of the time?
A partial exemption applies. The taxable portion is calculated as: capital gain × (days the property was not your main residence ÷ total days owned). The 50% CGT discount may also apply if you owned the property for more than 12 months.