Selling a home you rented out: the CGT partial exemption
Australia-wide (federal tax law)
Prefilled with a worked example. Change any figure; the result updates as you type.
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CGT: partly exempt, net capital gain $89,493
Worked examples
Rented out for ten years
Lived there from 2009, moved out in January 2016 and rented it out until selling in June 2026. It was worth $700,000 when first rented.
- Capital gain
- $712,000
- Assessable
- $178,986
- Net capital gain
- $89,493
CGT outcome: partly exempt (Australian Taxation Office, verified 18 Sep 2026) [2] [3] [4] (Australian Government Treasury, verified 11 Aug 2026)
Rented out, and a new home chosen as the main residence
The same owner bought a new home in 2019 and chose it as their main residence, which ends the old home's exempt period early.
- Capital gain
- $712,000
- Assessable
- $297,164
- Net capital gain
- $148,582
CGT outcome: partly exempt (Australian Taxation Office, verified 18 Sep 2026) [2] [3] [4] [5] (Australian Government Treasury, verified 11 Aug 2026)
A home business first, then rented within six years
A quarter of the gain relates to a home business run from the house before moving out; it was then rented for four years.
- Capital gain
- $428,000
- Assessable
- $107,000
- Net capital gain
- $107,000
CGT outcome: partly exempt (Australian Taxation Office, verified 18 Sep 2026) [2] [3]
The regulator’s own example, run through Delora’s engine
Show or hide: The regulator’s own example, run through Delora’s engine
ATO’s own example: Roya
- Assessable capital gain
- $243,162
- Net capital gain
- $121,581
Delora's engine (Australian Taxation Office, verified 18 Sep 2026) [2] [3] [4] (Australian Government Treasury, verified 11 Aug 2026)
ATO’s own example: Helen
- Assessable capital gain
- $100,000
- Net capital gain
- $100,000
Delora's engine (Australian Taxation Office, verified 18 Sep 2026) [2] [3]
ATO’s own example: Erin
- Assessable capital gain
- $46,000
- Net capital gain
- $46,000
Delora's engine (Australian Taxation Office, verified 18 Sep 2026) [2] [3] [4] [5]
Rules behind these figures (5)
Show or hide: Rules behind these figures (5)
Each rule is checked against real ATO and State Revenue Office worked examples (coverage) before it computes a live figure.
cgt_mr_discount_12_month_from_deemed_acquisitioncgt_mr_nomination_ends_exemption_windowcgt_mr_pre_absence_income_use_permanent_exclusioncgt_mr_six_year_rule_exceededcgt_mr_six_year_rule_within_limit
What this doesn’t cover yet (8)
Show or hide: What this doesn’t cover yet (8)
- Land over 2 hectares, an inherited home, a home you didn't move into straight away, and a home you rented out from the day you bought it each follow rules this checker doesn't cover, so it won't give a CGT figure. (regulator guidance)
- More than one absence ran past its exempt window. Each would need its own cost base and discount test, which Delora doesn't model, so it won't give a CGT figure. (regulator guidance)
- Delora doesn't encode how the 50% CGT discount is restricted for foreign residents, so it shows the gain before any discount and no discounted figure. (regulator guidance)
- You sell on or after 1 July 2027, when the 50% discount is replaced for gains after that date. Delora doesn't encode the replacement yet, so it shows the gain before any discount and no discounted figure.
- A home bought before 20 September 1985 is a pre-CGT asset, which this checker doesn't cover, so it won't give a CGT figure. (regulator guidance)
- You first rented the home before 20 August 1996, when the rule that resets your cost base to market value didn't apply. Delora doesn't encode that case, so it won't give a CGT figure. (regulator guidance)
- The sale is at a loss. Delora doesn't encode how a capital loss on a partly exempt home is worked out, so it won't give a figure. (regulator guidance)
- Part of the gain is taxable, and the ATO then resets your cost base to the market value when you first rented the home. Enter that value to see a figure. (regulator guidance)
Sources and methodology
Show or hide: Sources and methodology
- Using your home for rental or business | Australian Taxation Office — Australian Taxation Office (retrieved 16 Sep 2026, last checked 18 Sep 2026). Licence: ATO copyright notice — free reproduction, non-endorsement condition only
- Treating former home as main residence | Australian Taxation Office — Australian Taxation Office (retrieved 11 Aug 2026, last checked 18 Sep 2026). Licence: ATO copyright notice — free reproduction, non-endorsement condition only
- Negative Gearing and Capital Gains Tax Reform | Budget 2026-27 — Australian Government Treasury (retrieved 11 Aug 2026). Licence: CC BY 4.0
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.
Frequently asked
What does this checker work out?
It runs your facts through Delora's gate-verified rules engines for capital gains tax — the same engines checked against real ATO and State Revenue Office worked examples — and shows every figure with its source.
Is this tax advice?
No. It shows what the rules produce for the facts entered, not a recommendation or a substitute for advice from the ATO, the State Revenue Office or a tax professional about your own circumstances.
Limitations: what Delora's gate-verified rules produce for the facts shown, not personal tax advice. Australia-wide (federal tax law). Confirm your own situation with the ATO, the State Revenue Office or a tax professional.