Who can claim
This deduction is available to individuals.
- You disposed of a dwelling that was your main residence for all or part of the ownership period.
- You can establish when you moved in, moved out and used any part to produce assessable income.
What you cannot claim
- A full exemption generally does not apply where the home was not the main residence for the whole ownership period, was used to produce income, exceeds 2 hectares or the owner is an excluded foreign resident.
- The 6-year absence rule does not permit two homes to be treated as the main residence for the same period except for limited overlap rules.
- Using part of the home as a place of business can create a partial CGT exposure where you were entitled to deduct occupancy costs, even if you did not actually claim them.
How the amount is worked out
Test the full exemption first. If it does not apply, calculate the taxable ownership days and income-producing portion, then consider the 6-year absence rule, the first-used-to-produce-income market-value rule, limited main-residence overlap and other specific concessions.
Records the ATO expects
- Purchase, sale and occupancy dates
- Rental and business-use periods
- Market valuation when first used to produce income where applicable
- Land-area, foreign-residency and inherited-property records
Before you rely on this rule
Rental use, business use, foreign residency, inheritance, more than 2 hectares or building and renovation periods require a detailed CGT review.
Where this rule comes from
Primary source: ATO main residence and CGT guidance (Modified 21 June 2026). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- Income Tax Assessment Act 1997 Parts 3-1 and 3-3 (Compilation 266 in force 1 July 2026)
- ATO home-based business and CGT (ATO guidance accessed 30 July 2026)