Avoiding CGT

If you've held the property more than 12 months you should be entitled to a 50% discount. 

No exemption for investment property unfortunately. 

No, pretty sure it doesn't work that way in Australia. I think I heard at one stage that it was a method that is allowable in the US (could be wrong). I think I remember reading about the investment strategy of negating CGT by using the profit to purchase another investment, and constantly upsizing as you go.

Fairly certain it doesn't apply here. When you sell an item after making a capital gain from the amount you paid, it automatically triggers a CGT event.

Luckily if you plan it well, make good use of timing and utulise a good accountant you should be able signifigantly reduce the amount of CGT you are liable for. First priority is, as Rick said – hold it for longer than 12 mnths and automatically reduce it by 50%. It can then vary greatly as to how much further you can reduce it, depending on whose name or what structure the property is held in and their tax bracket in the year of sale. If the owner has made other losses that can be utilised or carried forward from previous years you may be able to further reduce it.

I have found through experience that if you want the maximum tax benefit from any sale of an IP, you need to plan the sale carefully, sometimes well in advance. With good planning you should be able to reduce tax effectively. Don't forget it is a fine line between tax avoidance and tax minimisation. You don't want to be caught on the wrong side.

The way I look at it is – if I'm paying tax it means i've made profit, which is the whole point of an investment to start with.

All the best