Do I pay capital gains tax on my main residence?

Default rule: gains on the property you live in as your main residence are fully CGT-exempt. Land must be ≤2 hectares to qualify for 100% exemption (larger lots get partial). You must have established residency before any sale (test: where mail comes, where electoral roll lists you, where utilities are connected). One residence per family unit, but spouses can each nominate one separate residence and split the exemption 50/50 between them at sale.

Six-year rule (ITAA 1997 s118-145): if you move out and rent the property, you can keep claiming main-residence exemption for up to 6 years from the date you stopped living there, provided you don't claim another property as your main residence in that period. Reset the 6-year clock by moving back in for any period, then move out again. We have a separate guide at `/guides/cgt-6-year-rule-australia` covering edge cases.

Partial exemption: if you ever rented out part of the home (e.g. a granny flat) or used part for business (home office claiming occupancy expenses), the exemption is reduced pro-rata to floor-area + time. ATO TR 97/25 lays out the apportionment method. Note: claiming home-office running costs (electricity, internet) doesn't trigger partial CGT, only occupancy expenses (rent, mortgage interest as a deduction) do.

Foreign residency: if you sell while a non-resident for tax purposes, you lose the main-residence exemption entirely on the gain attributable to the foreign-residence period (per the 2019 amendment, ITAA 1997 s118-110(3)). Returning to Australia to re-establish residency before sale is the workaround, but takes formal residency tests, not just landing.