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CGT: Your main residence

Your ‘main residence’ (your home) is generally exempt from capital gains tax (CGT). To get the exemption, the property must have a dwelling on it and you must have lived in it. You’re not entitled to the exemption for a vacant block.

Generally, a dwelling is considered to be your main residence if:

  • you and your family live in it
  • your personal belongings are in it
  • it’s the address your mail is delivered to
  • it’s your address on the electoral roll, and
  • services such as gas and power are connected

The main residence exemption is not based on one factor alone, and the weight given to each varies depending on individual circumstances. The length of time you stay there and your intention in occupying it may also be relevant.

You’re eligible for a full main residence exemption if the dwelling:

  • has been the home of you, your partner and other dependants for the whole period you’ve owned it
  • has not been used to produce assessable income – that is, you’ve not run a business from it, rented it out or flipped it, and
  • is on land of two hectares or less

If the full exemption applies your capital gain or loss is disregarded – you don’t pay tax on any capital gain, but nor can you use any capital loss to reduce your assessable income.

Alternatively, you may be entitled to a partial exemption.


Griffin & Associates

79 Denham St, Townsville City QLD 4810

Phone 07 4772 6588

Chartered Accountants