6 Year Main Residence (PPOR) Absence Rule
Section 118-145 of the Income Tax Assessment Act 1997 allows a taxpayer to keep treating their principal place of residence as their main residence while absent for up to 6 years if the property is being rented out. The extension is even longer if the property is not rented.
The taxpayer could rent, negative gear, claiming all expenses as per normal yet sell the property within the first 6 years of it being rented and not have to pay any capital gains tax.
A common question is how long does person need to live in a property before it becomes the main residence. There is no minimum requirement listed in the law.
This section cannot be used to claim on a property until it has become your main residence. You cannot be absent until after you were present.
Also you cannot be absent from a property is you are still living there so it won’t apply to renting out rooms or part of a residence.
Vacant land will not qualify either as a ‘dwelling’ is needed for the exemption to occur.