When working out your eligibility for a full or partial CGT main residence exemption, you need to factor in both:
- floor-area of the residence you rent
- the number of days the property was used to generate income.
You will need to keep records, such as:
- statements from platforms that show your income
- receipts of any expenses you want to claim as a deduction.
For more information, download our factsheet about Capital gains tax on the sale of property.
Example: renting part of your home and calculating CGT
Thomas purchased a home under a contract that was settled on 1 July 2019 and sold it under a contract that was settled on 30 June 2025. The home was his main residence for the entire time.
Throughout the period Thomas owned the home (2,192 days), Thomas advertised one bedroom for rent on a digital platform. Over the period he owned it, the bedroom was rented out for 1,857 days.
The bedroom Thomas rented out represented 20% of the floor area of the home. Both Thomas and the tenants used the living room, bathroom, laundry and kitchen, which represented 30% of the floor area of the home. Only Thomas used the remainder of the home.
Thomas calculates the floor area used by the tenant as 35%. That is, 20% for the bedroom plus 15% for the common areas (50% x 30%).
Thomas made a capital gain of $120,000 when he sold the home. Of this total gain, the following proportion is not exempt:
Capital gain × percentage of floor area x percentage of time rented = taxable portion
$120,000 × 35% × (1,857 days ÷ 2,192 days) = $35,582
As Thomas held the property for at least 12 months, he can apply the 50% discount to his capital gain.
End of exampleWatch:
Media: How to complete myTax when you have sold a rental property
https://tv.ato.gov.au/ato-tv/media?v=bi9or7odtggh5rExternal Link (Duration: 4:39)