What property types are exempt from capital gains tax?

There are specific situations where properties are exempt from capital gains tax (CGT)*.
CGT does not generally apply to:

  • Your main residence if it is owned by individuals (not a company or trust)
  • Properties purchased prior to 20th September 1985
  • Depreciating assets that are only used for taxable purposes, such as items in a rental property.

*CGT may still apply to a primary residence if the property is partially rented out, used for business purposes, or if it sits on more than two hectares of land. While CGT may not apply to properties bought before 20th September 1985, it can still apply to property improvements made after this date.