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  • Building or renovating your home

    Generally, there are no income or capital gains tax (CGT) implications if you build or renovate your own home.

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    Capital gains tax

    If your home is your main residence and you make improvements to it, they are exempt from CGT if you later sell it.

    This includes improvements on land adjacent to your home (such as installing a swimming pool) if the total area, including where your home stands, is two hectares or less.

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    Goods and services tax

    You are not liable for GST if you sell your family home.

    GST is generally included in the price of the goods and services you buy to build or renovate your home. However, you're not entitled to GST credits because they are for a private purpose.

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    Buying to renovate for profit

    If you buy a property with the intention of renovating and selling it at a profit, you're likely entering into a profit-making activity. This process is also known as 'house flipping', 'property flipping' or 'buying to flip'. This could have income tax, CGT, and GST implications.

    See also:

    Last modified: 10 Jul 2020QC 23623