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I think the above comments are correct if the rented house was claimed as your PPOR (and you didn’t claim another).
However, from what I understand, if the rented house was NOT claimed as your PPOR – you would have to apply the ownership ratio calcuation (eg. owned for 10 years, was not PPOR for 9.5 years) to any CGT liability.
The ownership ratio caluation and example is shown here ..
I spoke the the ATO on two occasions and received TWO different answers!!!. Not very helpful : (
I had another read through the ATO CGT guide and based on the examples within, this is the way I think it SHOULD work out for me.
1) I should receive a part “main residence exemption” on CGT for the existing front house and front land. This part exemption will be based upon 6 years of living as my primary residence and 2 years of renting it out. This will be expressed by a ratio (calcuation is on the ATO site)
2) I should also recieve the 50% CGT discount on any CGT amount remaing (after the above exemption has been applied) as I have owned the property for more that 12 months.
3) I will NOT recieve any CGT exemption for the rear lot and new house UNLESS I hold for a further 12 months after the new title is issued.
4) Cost based of each lot will be based on a 50% split of the original cost of the entire block + land development costs per lot + construction/improvement costs per each dwelling.
Comments anyone?
Cheers – NJ
