The main residence exemption under the CGT rules cannot generally apply to properties owned by a trust. The main residence exemption can generally only apply when the dwelling is owned by an individual – refer to section 118-110 ITAA 1997. There are some very limited exceptions to this including:

• Where the property is held by a special disability trust.
•  Where the property was owned by an individual just before they died and is now held in a deceased estate or testamentary trust, there are some special rules which can potentially enable the main residence exemption to apply; or
• Where the occupier of the property is absolutely entitled to the property as against the trustee.