All Topics / Legal & Accounting / My CGT Liability

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  • mkbonline
    Join Date: 2012
    Post Count: 19

    I had purchased 2 bed townhouse as my PPOR in Dec 2010 for $320K in Toongabbie NSW. Lived their till Feb 2015 and then moved to overseas with a new job. My PPOR has been rented out since April 2015 (more than 2 years). I came back to Australia in Nov 2016 but renting out in a different suburb (due to better school district).PPOR is still rented out. Current estimated market price is $520K.

    Now I am planning to buy 2nd property to use as PPOR but want to ensure that this does not lead to CGT liability when i sell the existing property.I have consulted few tax agents but getting conflicting advise regarding CGT liability. Some suggest that i should move back to my property for a month to avoid CGT whereas some suggest that i have to pay CGT for time period it has been rented out (April 2015 – till date)

    My questions

    1. If i sell it now while i am renting in another place– do I have pay CGT? If NO – How long I can keep it as rental property without incurring CGT? If YES – what is my CGT liability in terms of $? How can I minimize CGT ? Should I move back to PPOR and then sell it to minimize CGT or even make it zero.

    2. Does it matter if i sell in prior or after buying the new house (new PPROR)? Can i keep it as rental property after buying new house without incurring CGT? If yes – for how long?

    3. I might be considered as non-resident for Tax purpose during FY15-16 sinceI was not in Australia. Does it effect CGT Liability?


    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    1. It depends
    2. Yes
    3. Yes

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide)

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