Income
6. Main Residence Exemption
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Last updated: 31 Jul 2015
- One of the key exemptions from the Capital Gains Tax (CGT) regime is the sale of a family home. This is called the ‘main residence exemption.’ It can be a relatively complex exemption.
- When you make a gain on the sale of your main residence and you are eligible for the main residence exemption then any capital gain will be exempt from CGT. This will be either a partial or full exemption.
- A taxpayer will qualify for a full CGT main residence exemption if:
- the dwelling was their main residence during the time that they have owned it; and
- it was not used to produce assessable income for example it was never rented out or used for business purposes.
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