Main Residence Exemption – 2 properties for up to 6 months

main residence exemption

Usually you’re only entitled to the main residence exemption on one property for any particular period.

If for a period you have two homes that could be regarded as your main residence – such as when you buy a new home while retaining ownership of your existing home beyond a period of six months – you must choose one of the homes for this exemption and CGT will apply to the other property. (You don’t have to make the choice until you sell one of the homes.)

Two properties for up to 6 months

If you acquire a new home before you dispose of your old one, both dwellings are treated as your main residence for an overlap period of up to six months if:

  1. you lived in your old home and it was your main residence for a continuous period of at least three months in the 12 months before you disposed of it,

  2. you didn’t use it to produce assessable income (such as rent) in any part of that last 12 months when it was not your new main residence, and

  3. the new dwelling becomes your main residence.

If you need some help with claiming this exemption, just give us a call on (03) 9585 7555 or email Noel

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