Weekly Tax Bulletin --- Page: 2044-2045 : 8 December 2006 Original article by Lachlan Gilbert and Kirk Wilson
ABIX Summary
Australia's capital gains tax (CGT) rules relating to the main residence exemption have a tendency to cause confusion. One example is what is known as the "changing residence" concession, which is available when a taxpayer acquires a new residence before selling their old one. It allows the taxpayer to treat both properties as their main residence until the first property is sold, or six months prior to the old property being sold, whichever is the shorter period. A number of conditions must be met in order to get the concession, including that the first property must have been the taxpayer's main residence for at least three of the 12 months before it was sold.
