CGT land cap impact

Estimate the future capital gains tax exposure created when a main residence sits on land above the Australian main-residence exemption cap.

ATO rule modelled Main residence exemption is limited to up to 2 hectares, about 4.94 acres, of private-use land. The selected exempt land must include the land under the dwelling. Excess land can expose part of a future capital gain to CGT. ATO source

Purchase scenario

This assumes the property is otherwise your main residence, is sold with the dwelling, and is held by an Australian tax resident at disposal.

Property and sale Total land size (hectares) Main residence land cap (hectares; 2 ha is about 4.94 acres) Purchase price ($) Expected sale price ($)

Cost base Purchase costs ($) Capital improvements ($) Selling costs ($) Ownership period (years)

Apportionment Method

Area estimate divides excess hectares by total hectares. Valuation percentage is better when the dwelling and selected 2 hectares are worth a different share of the property.

Tax settings Estimated marginal tax rate, incl. Medicare levy (%) Apply 50% CGT discount when held at least 12 months

This estimates extra tax from the taxable capital gain. It does not calculate your full tax return.