We get this question a lot, and there are plenty of myths about how many months you must live in a property for it to qualify as your Principal Place of Residence (PPOR). The ATO does not actually set a minimum occupancy period on its website; instead, it considers whether the property is genuinely your home. When you occupy a property, the ATO looks for indicators such as where your family lives, the address on your electoral roll and driver’s licence, where your mail is delivered, and whether utilities are connected in your name. Based on your circumstances, even a stay of three to six months may be enough to show genuine occupancy.
Although the ATO doesn’t set a strict minimum occupancy period for your Principal Place of Residence, it does outline specific rules for cases like newly built or renovated homes, moving between residences, and applying the main residence exemption after you move out.
Newly Built or Renovated Homes
If you build or substantially renovate a home, you can treat the land as your main residence for up to 4 years before you move in, but only if you:
- Move in as soon as practicable, and
- Live there for at least 3 months.
Moving Between Homes
When you buy a new home before selling or leaving your old one, both properties can qualify as your main residence for up to 6 months, provided:
- You lived in the old home for at least 3 continuous months in the last 12 months, and
- It wasn’t used to produce income during that period.
After You Move Out
- If not rented or used for income: You can continue treating the property as your main residence indefinitely.
- If rented out: You may apply the “6-year rule” and still treat it as your main residence for up to 6 years.
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Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
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