Six-year rule
A concession letting you rent out your former home for up to six years while keeping it CGT-free.
If you move out of your main residence and rent it out, you can continue treating it as your main residence for capital gains purposes for up to six years. Sell within that window and the gain can remain fully exempt.
If the property is left vacant rather than rented, the exemption can continue indefinitely rather than being capped at six years.
The catch is that you cannot claim two main residences at once. Choosing to keep the exemption on the old property means the home you now live in is exposed to CGT for that period.
Moving interstate for work
You move for a four-year posting and rent your home out. On return you sell it. Because the absence was under six years and you nominated no other main residence, the gain can be entirely exempt.
The bit people get wrong
The six-year clock resets if you move back in and re-establish the property as your main residence. Used deliberately, this can extend the concession well beyond six years across multiple absences.
Common questions
Can I claim rental deductions during the six years?
Yes. While the property is rented you claim interest, rates and other expenses normally. The concession affects capital gains treatment, not your income deductions.
What if I am away for more than six years?
The exemption is apportioned. The period beyond six years counts as a taxable portion of your ownership, so only part of the gain remains exempt.
Do I have to decide now?
No. The choice is made when you sell and lodge the return, so you can compare outcomes across both properties before committing.