In Australia, if you sell a property, you may be liable for capital gains tax (CGT) on any profit you make from the sale. However, there are some exemptions available that may allow you to avoid or reduce your CGT liability.
One such exemption is the main residence exemption, which allows you to avoid CGT when you sell your primary residence. To be eligible for the main residence exemption, you must have lived in the property as your primary residence for the entire period of ownership.
There is no minimum time period that you need to live in a property to be eligible for the main residence exemption. However, if you have not lived in the property as your primary residence for the entire period of ownership, you may only be eligible for a partial exemption.
If you have not lived in the property as your primary residence for the entire period of ownership, the exemption may be calculated based on the proportion of the ownership period during which the property was used as your primary residence. This is known as the ‘proportional method’.
It’s important to note that the main residence exemption may not apply in all situations, and there may be other tax implications associated with selling a property. It’s always a good idea to seek professional advice from a tax specialist or accountant to understand your tax obligations and any available exemptions or concessions