My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise but a guide to assist you.
Because the property is owned in individual names and not a corporation you pay CGT on 50% of the profit.
You will get some exemption for it being your principal place of residence but how much I cannot say your accountant will have to work all that out when he prepares your turn.
You will need to have a valuation at the time of purchase, after the 6 years and then time of sale. The first and the last will be the price on the contracts.
Also if you are in the UK at the moment you will also have to declare the Capital gain in the UK and the tax paid in Australia. It is income and you will get an exemption on the Australian paid tax but if the UK tax is more then you will pay the difference.
I hope this makes sense and is of assistance. If there is nothing further
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This is the link you need to read about the law applying to non residence.
If you did not obtain an independent market valuation as at 8 May 2012 you are not eligible to the discount.
Your accountant in Australia can give you more details.
That applies to all.
If you have lived in it and then decided to rent you can claim it as your principal place of residence for up to 6 years.
But you must have lived in it.
I hope this is clearer?
Yes you can be a non resident and claim the 6 years. Many australians do that.
They move to work overseas and are not residence for tax purposes but can claim the 6 years.
My understanding is that the CGT is then apportioned for the time you lived in it not the 6 years. But your accountant is the one to best advise on that.