2023 Capital Gains Tax (CGT)

The CGT main residence exemption: tips and traps

Published Date: 2 Nov 2023


The capital gains tax main residence exemption is (arguably) the most generous exemption for post-CGT assets in the income tax legislation. The eligibility requirements are not onerous, and it is available to young and old, rich and poor. However, actions, or inactions, can result in a loss of the exemption, in whole or in part. The article focuses on: the significance of “adjacent land” including for primary producers; keeping the exemption when demolishing or subdividing the family home; when one dwelling can be two CGT assets; planning for sea and tree changers with two dwellings; the impacts of death and inheritance; the impacts of relationship breakdowns; absences, especially for foreign residents; and the implications of the increasing use of main residences to derive income including through modern work practices and “side hustles”.


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2023 Capital Gains Tax (CGT)

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