Capital gains tax and downsizing: what Brisbane sellers need to know.

The main residence exemption, the downsizer super contribution and the six year rule. Here is how they interact for Brisbane property owners.

The main residence exemption

If the property you are selling has been your principal place of residence for the entire time you owned it, you pay no CGT on the sale. This is the most common situation for downsizers and means the financial gain from selling a long-held family home is generally tax-free.

Partial exemption situations

If the property was rented for any period, used partly for business, or you were absent from it for more than six years without treating another property as your main residence, you may owe CGT on a portion of the gain. Speak to an accountant before selling if any of these apply.

The downsizer super contribution

If you are 55 or older and selling a property you have owned for at least 10 years, you can contribute up to $300,000 ($600,000 for couples) of the sale proceeds directly into superannuation. This contribution does not count toward your non-concessional contribution cap. It is one of the most valuable financial planning tools available to older Australians selling property.

Speak to an accountant first

Every downsizing situation is different. Roxanne can refer you to a trusted accountant who specialises in property transactions as part of the pre-sale process. Getting the advice before you sign anything is always cheaper than getting it after.