The main residence exemption needs to be considered in a variety of situations when a taxpayer sells a property, they have lived in. The ATO hopes that the following tips will help in this regard:

• Taxpayers should consider if they have started earning income from their home (in which case they may need to get a market valuation for CGT purposes).
• When renting out a property that was their main residence, taxpayers need to consider whether to use the 6-year absence rule when they sell their property.
• Taxpayers can only have one property as their main residence at a time. The only exception is the 6-month period when they move from one home to another.
• Has the taxpayer's residency changed? If so, this may affect eligibility for the exemption.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.