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  • Your home

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    Selling your home after rebuilding

    If you decide to sell your home after it has been rebuilt it will still be classed as your main residence and be exempt from capital gains tax (CGT) provided you have both:

    • moved back into the repaired or rebuilt property as soon as practicable after the work was completed
    • lived there for at least three months before selling.

    Example: Moving back in as soon as practicable

    Louis and Yasmine's home was destroyed by Cyclone Yasi. They decided to use the insurance payment to rebuild it.

    They rented a house 20 kilometres away with a six-month lease, and a six-month option to renew. They enrolled their child, Marley, in a school close to their rented home.

    After six months their home was still being rebuilt, so they took up the renewal option on their rental house.

    After nine months, their home was complete. However, because Marley was halfway through the final school term and there would be a financial penalty for breaking the lease, the family decided to stay in the rental property until the end of the school term.

    In this circumstance, Louis and Yasmine moved back into their home as soon as practicable after the work had been completed.

    End of example

    Selling your land without rebuilding

    If your home was destroyed and you then dispose of the vacant land on which it was built, you will still be eligible for the main residence exemption from CGT.

    Engaging builders and contractors

    We closely monitor activity in disaster-affected areas to ensure the community is not being taken advantage of by businesses undertaking repair and reconstruction work. You can take steps to protect yourself as well.

    Genuine businesses have an Australian business number (ABN) which they quote on their invoices and other documentation. If you're engaging builders or contractors to undertake repair and reconstruction work, you can check to make sure they're a genuine business on ABN LookupExternal Link. Businesses should not charge GST unless they are registered for GST.

    You could also ask for references and check with the relevant state authority to ensure the builder or contractor is appropriately licensed.

    If you have concerns about work performed or feel you have been overcharged, you can contact your state or territory consumer authorityExternal Link.

    If you know of or suspect phoenix, tax evasion or black economy activity, you can report it to the Tax Integrity Centre by:

    • completing the tip-off form. The form is also available in the contact us section of the ATO app.
    • calling the Black Economy Hotline on 1800 060 062.
    Last modified: 01 Jul 2019QC 50171