Capital gains tax property exemption tool

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Capital gains tax property exemption tool

Our tool takes between 5 and 10 minutes to use.

What you can do with this tool

The tool results are based on the information you enter. You should use these results as an estimate and for guidance purposes only.

You can use this tool to estimate your capital gain or loss before disposing of your interest in a property. You should use it again after the disposal of your CGT asset to work out the amount to enter when preparing your tax return.

You need to have owned the property as an individual, either in your own right or jointly with someone else. The tool covers situations where the property is (or was):

• your home, even if you lived in and then left it vacant for a period of time or used part of it to produce income
• a rental property
• a vacant block of land.

From 1 July 2021, you may be entitled to a capital gains tax exemption when you have a formal granny flat arrangement with an elderly or disabled person to live in your property.

Foreign residents can no longer claim the main residence CGT exemption when they sell property in Australia after 30 June 2020, except in certain circumstances.

Maximum exemption

The tool gives you the maximum exemption for capital gains. It automatically increases your exemption percentage to cover some, or all periods you didn't occupy the property, provided you met certain conditions.

The exemption percentage will increase automatically if you made a capital loss and either:

• you were absent from the dwelling after occupying it as your main residence
• you built or renovate a dwelling on the property and then occupied it as your main residence.

If the tool results display 'Any capital gain is fully ignored', but you are applying an exemption or rollover, you will be required to include the CGT event and relevant exemption in your tax return. For example, you have chosen to continue to treat your former home as your main residence, and you are applying the full main residence exemption.

What you will need

To use this tool you will need:

• the date you acquired the property and the date you sold it (or will sell it)
• other information depending on your circumstances – for example, if you rented the property for a while, you need to enter the period it was rented.

Limitations

This tool won't cover your situation if:

• the property is on more than 2 hectares of land
• you owned 2 or more properties and there were overlapping periods they were your main residence
• you and your spouse, or you and your dependent children, had different main residences at the same time
• the property is being transferred because of a marriage or relationship breakdown
• you inherited the property on or after 20 September 1985 and there was a dwelling on it when you sold it
• you were absent from the property more than once and you used it to produce income (such as renting it out), and either
  • one of these absences is more than 6 years, or
  • during your absence the property was completely vacant (you didn't reoccupy it)
• you used a part of the property, other than the dwelling, to produce income
• you had a building or other structure constructed on the property and
  • you acquired the property before 20 September 1985 and the building works were after that date, or
  • you sold the property less than 3 months after you first occupied it
• you acquired one property (or properties) pre-CGT and another property (or properties) post CGT and you amalgamated the titles
• your property is being compulsorily acquired
• the property was used for affordable housing
• the CGT event relates to property with a granny flat agreement in place.

If your situation is listed above, see Your main residence – home to find out how CGT applies to your circumstances.