Income Tax Assessment Act 1997
You get only a partial exemption for a *CGT event that happens in relation to a *dwelling or your *ownership interest in it if:
(a) you are an individual; and
(b) the dwelling was your main residence for part only of your *ownership period; and
(c) the interest did not *pass to you as a beneficiary in, and you did not *acquire it as a trustee of, the estate of a deceased person. 118-185(2)
You calculate your *capital gain or *capital loss using the formula:
|CG or CL amount||×||
Non-main residence days
Days in your *ownership period
The capital gain or loss may be further adjusted if the dwelling was used to produce assessable income: see section 118-190 .
You bought a house in July 2020 and moved in immediately. In July 2023, you moved out and began to rent it. You sold it in July 2030, making (apart from this Subdivision) a capital gain of $10,000. At the time you sold the house, you were an Australian resident.
You choose to continue to treat the dwelling as your main residence under section 118-145 (about absences) for the first 6 of the 7 years during which you rented the house out.
Under this section, you will be taken to have made a capital gain of:
$10,000 × 365
However, this section does not apply if, at the time the *CGT event happens, you:
(a) are an *excluded foreign resident; or
(b) are a foreign resident who does not satisfy the *life events test.