Just to close this question off – the Accountant was wrong. The capital gains tax is worked out on a pro-rata basis calculated from the time when the 6 year rental period has elapsed.

We have received more accurate advice, and we will end up paying at most approx $5000 if we continue to rent our property for 6 months after the 6 years CGT…[Read more]

According to the ATO web-site I am not liable to pay CGT on the whole 6 years, so hopefully my second opinion will confirm this. It’s time for a new accountant if this is the case!

Purchased a transportable for a beach house in SA in 1998. Some tips as follows:
The purchase price of the transportable is usually fairly competitive. The house buillders try to make their profit on changes to their standard design, installation and site works (,extra doors, pergolas, electrics, plumbing etc) Try to minimize “other” work done by…[Read more]

Note – I am seeking other expert advice (expat specialists this time), as the ATO web-site contradicts the accountants advice. In addition, I have received other advice which suggests I should keep renting the property. It certainly is not clear to me yet!

http://www.ato.gov.au/individuals/content.asp?doc=/content/57252.htm&page=24&H6_7

Thanks all for the advice

I have consulted an accountant andh it was bad news

‘That is not good news; it may pay to offer an incentive to the tenant to
leave before the 6 year period ends. The tax office will not be
lenient.

Once the 6 years ends a full exemption from CGT is no longer available.
The gain will be calculated from the day the…[Read more]

Thanks for your response Simon.

I have asked the PM to request the tenants to leave early, but the tenants are keen to stay in the property for as long as possible. We are exploring the option of contacting the tenant directly and offering an incentive for them to vacate the premises early, or offer them a month free in the house.

If the tenants…[Read more]