Glossary · Australian property
CGT 6-year absence rule.
Allows a former main residence to keep main-residence-exempt status for up to 6 years after the owner moves out, provided no other property is claimed as main residence.
Section 118-145 of the ITAA 1997 lets a taxpayer continue treating a former main residence as their main residence (and therefore CGT-exempt) for up to 6 years after they move out, provided they do not claim any other dwelling as their main residence during that period.
The 6-year clock resets each time the dwelling is reoccupied as main residence. So an owner can move in, move out for ≤6 years, move back in (resets), move out for another ≤6 years, etc.
A second property bought during the absence period can still be designated main residence. But then the 6-year rule on the first property is broken from the date the second is occupied.
Worked example
Bought 2015 as main residence. Moved out and rented Jan 2020. Sold Dec 2025 (5y 11m absence). Whole gain remains exempt.
Source
Income Tax Assessment Act 1997 (Cth) s118-145.
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