34 property owners in South East Queensland requested assessments this month
iKey Facts
- •CGT applies to most property sales except main residence; gain is added to taxable income
- •50% CGT discount applies for individuals/trusts holding property more than 12 months
- •Main residence exemption fully eliminates CGT on family home (with strict conditions)
- •Companies pay 30% CGT (no discount); SMSFs pay 15% (10% with discount)
- •See companion: Tax Implications of Selling Development Sites in Australia
CGT Basics
Capital gain = sale price minus cost base (purchase price + acquisition costs + capital improvements).
Tax is paid on the gain at marginal rates, with structural discounts depending on the vendor entity.
CGT Discounts
- Individuals / trusts: 50% discount on gains held more than 12 months
- Companies: no discount; 30% tax on full gain
- SMSFs: 33.33% discount on gains held more than 12 months (effective 10% tax rate vs 15% normal)
- Foreign residents: no discount (post-2012 changes)
Main Residence Exemption
A primary residence (PPR — principal place of residence) is generally CGT-exempt.
Conditions:
- Dwelling on the land
- Vendor has lived there
- Not used for income production (or only partly)
- Land size up to 2 hectares included (excess potentially taxable)
For larger blocks (3,000sqm+, common in Brisbane "splitter" suburbs), the area above 2 hectares may not qualify for full exemption.
Brisbane-Specific Considerations
Common Brisbane scenarios:
"Founded by Daniel McCormack, ACRES advises on transactions from $2m to $100m+ and works exclusively with qualified Brisbane developers and institutional buyers."
Speak with our team
ACRES provides expert property advisory across Australia.
The Complete Guide to Selling Your Property to a Developer
Step-by-step: how the process works, what to expect, how to maximise your price, and the mistakes that cost sellers thousands.
18 pages · PDFNo spam. Unsubscribe anytime.
Family home with big backyard
- House on 1,500sqm = full exemption typically
- House on 4,000sqm = exemption to 2ha, excess potentially taxable
Investment property
- Full CGT applies; 50% discount if held more than 12 months
- Past 90 days of "principal residence" treatment can complicate
- Cost base = deceased's cost base (in most cases)
- 2-year window for CGT-free sale if inherited as PPR
Subdivision before sale
- Each lot is a separate CGT asset
- Cost-base apportionment per ATO methodology
- Significant complexity; specialist advice critical
Structuring Decisions
Key questions for vendors:
- Who owns the land? (Individual, joint, trust, company, SMSF)
- How long has it been held? (12-month threshold)
- What's the cost base? (Purchase + improvements + acquisition costs)
- Has it been a residence? (Main residence exemption)
- Has it been income-producing? (Affects exemptions)
Vendor Strategy
- Engage a specialist accountant 6+ months before sale
- Document the cost base — receipts, improvement records
- Consider timing — financial year crossing can defer tax
- Explore trust / company structuring (limited scope post-sale)
- Don't overlook small bases — landscaping, hardstand, ancillary structures all add to cost base
This article is general information only and is not legal, tax, or financial advice. Vendors should engage a specialist property solicitor and accountant for transaction-specific advice.
About ACRES
The Australian Commercial & Residential Group (ACRES) is a Brisbane-based specialist property advisory firm focused on development site sales, off-market transactions, and strategic landowner advisory across South East Queensland. Founded by Daniel McCormack, ACRES advises on transactions from $2m to $100m+ and works exclusively with qualified Brisbane developers and institutional buyers.
Frequently Asked Questions
Is my family home really 100% CGT-free?
Usually yes, subject to area limit (2ha) and continuous main-residence use. Specialist confirmation worthwhile.
Can I defer CGT?
Limited — small-business rollover, replacement-asset relief, scrip-for-scrip. Each has strict conditions.
Are option payments taxed differently from sale proceeds?
Yes — option fees are generally taxable on receipt; sale proceeds on completion. Complex; specialist advice needed.
What property do you want assessed?
Our team will review your zoning, block size, and development potential.
100% free. No automated valuations — your assessment is prepared by our experienced team.
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/capital-gains-tax-vendors-selling-developers | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
