How to Minimize or Avoid Capital Gains Tax When Selling Property: Smart Strategies Every Owner Should Know

Thinking about the tax that comes with selling property? With careful planning—from knowing what counts as your cost base to smart timing—you could significantly reduce or even avoid Capital Gains Tax.

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✅ Key takeaways

• ✅ Maximize your cost base: Include purchase price, stamp duty, conveyancing fees, agent commissions, and capital improvements—every dollar counted lowers your taxable gain. 

• ✅ Main residence exemption: If the property has genuinely been your principal place of residence, you may qualify for a complete CGT exemption. 

• ✅ 6‑Year Rule (Temporary Absence Rule): Rent out your main home for up to six years after moving out and still potentially claim the full exemption—so long as you don’t nominate another main residence in that period. 

• ✅ 50% CGT discount: If an investment property is held for more than 12 months, only 50% of the capital gain is taxable.

• ✅ Timing is key: The CGT event kicks in when the contract is signed—not at settlement—so aligning the sale with a lower-income year can reduce tax. 

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Read the full article for detailed examples, nuanced rules, and clarity on tricky scenarios like inherited property or mixed-use homes—How to Avoid Capital Gains on Property: Essential Tips.

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