The Ultimate Guide to Tax-Free Income in Australia: How to Make Money Without Paying Taxes

️❗The main residence exemption allows you to sell your property without paying any tax on the gain.

️✅The six-year main residence exemption allows you to claim capital gains tax exemption if you turn your main residence into an investment property.

️⚠️Moving out of your main residence too soon after purchasing it can result in losing the main residence exemption.

️🏘️Turning your home into an investment property can provide opportunities for tax-free income and capital gain.

️💰Getting a property valuation before transitioning from the main residence can help minimize capital gains tax liability.

What is the main residence exemption?

—The main residence exemption allows you to sell your main residence without paying tax on the capital gain.

How long do I need to live in a property to claim the main residence exemption?

—Living in a property for at least six months is generally recommended to claim the main residence exemption.

What is the six-year main residence exemption?

—The six-year main residence exemption allows you to continue claiming the main residence exemption if you turn your main residence into an investment property for up to six years.

What are the risks of turning my home into an investment property?

—One risk is losing the main residence exemption if you move out too soon after purchasing the property. Another risk is potential tax implications on rental income and capital gains.

Should I get a property valuation before transitioning from the main residence?

—Getting a property valuation can help establish a higher cost base, reducing potential capital gains tax liability when you sell the property.

00:00Discover the best loophole in Australia to make tax-free income.

02:39Learn about the main residence exemption and how it allows you to sell your property without paying tax on the capital gain.

04:25Understand the six-year main residence exemption and how it can provide tax benefits if you turn your main residence into an investment property.

06:20Be cautious of the risks involved when moving out of your main residence too soon after purchase, as it may result in losing the main residence exemption.

09:16Discover the opportunities for tax-free income and capital gain by turning your home into an investment property.

11:24Learn the importance of getting a property valuation before transitioning from the main residence, as it can help minimize capital gains tax liability.