Want six months in Bali without the CGT?
Don’t we all. Well, the main residence exemption rule means that you may be able to be absent from your main residence without triggering Capital Gains Tax (CGT).
How does this work?
Your main residence (place you call “home”) is, generally speaking, exempt from CGT. Usually when you stop living in your home, it is no longer considered your “main residence.” However, there are exceptions to this rule.
Here are the exceptions to the rule!
You can continue treating your home as your main residence, for as long as you like, even while you aren’t living in it if you do not rent it out for the period you are absent.
However, if you’d like to generate a little income (wouldn’t that be nice?) then you could rent your house out for the periods you are absent for up to six years. So that’s a period of six years with no CGT. Not a bad deal right?
Of course, there are specific eligibility requirements and further details around this, especially if you are moving overseas or buying another home.
For further information please feel free to contact us and we’d be happy to explain further or you can visit the ATO website.