CGT

june 2003 140k to April 2008 Assuming was PPOR
2003 – 180 day approx
2004 – 364 days approx
2005 – 364 days approx
2006 – 364 days approx
2007 – 364 days approx
2008 – 93  days approx to April
Add up days = 1729 days ppor use
April 2008 – 2009 – 271days
         2009 – 2010 – 364 days approx
         2010 – now – 240 days approx
total rental days = 875
875 / 875 +1729 = .336 of capital gain taxable
140 k * .336 =47k that is taxable
divide by 2 as over twelve months ownership
23.5 k taxable gain
if joint owned 1/2 again (and add to each assessable income)
add to yearly income
calculate tax based on what marginal tax bracket the addition pushes total assessable income to.

should we pay it out or most of it and use it as a tax write off?
Do not understand how paying out a loan is a tax write off

I have heard you can sell your PPOR up to 6 years after moving out and not pay any CGT, not sure if this applies if you have a new PPOR though.

You sya your partner has a house too.  If your partnerw ould be entitled to claim that house as a PPOR for part of the time you have been together then you and your partner would have to elect which house had PPOR status or half of each house.  Otherwise your real estate agent is correct although you should have a valuation done in case you are audited.  Selling costs including commission would also reduce your capital gain

No, the ATO is auditing you, not the bank.

If you did not commission the valuation then the valuer (nor the bank) may not extend the right to use the valuation to yourself. The purpose of the bank's valuation is for mortgage purposes which differs greatly from a valuation for market value for the purpose of a sale.

Agents estimates are worthless from a tax perspective as they are mere pitches to get your business and not valuations.

You can actually order a valuation and instruct the valuer that you want the value of the property as of a certain date.

valuation

Have you got a copy of the valuation?