In this Tax Time edition of Wealth Coffee Chats, Anthony Wolfenden, Tax Financial Advisor at Positive Tax Solutions, uncovers a little-known capital gains tax (CGT) exemption that could make a big difference in your property and estate planning. While most investors understand the six-year rule — allowing you to treat a former principal place of residence as CGT-exempt even while renting it out — Anthony dives deeper into an often-overlooked extension of that rule that applies at the end of life. He explains how, under current tax laws, if the last property you own and live in before moving into aged care or passing away is sold by your beneficiaries within two years, it can remain exempt from capital gains tax, regardless of whether it was once an investment property. This episode breaks down how timing, ownership, and estate strategy can significantly affect your tax position — and why good estate and lifestyle planning can protect both your wealth and your family’s future.
 
Episode Highlights:

Quick recap: how capital gains tax applies to your principal residence.
The six-year rule — keeping your home CGT-exempt even after you move out.
What happens when you exceed the six-year window.
The surprising CGT exemption related to aged care and estate planning.
How your final residence may be sold tax-free by your beneficiaries.
Key timing rule: why the two-year sale window after passing is crucial.
How the property’s past use (investment or home) may not affect the exemption.
The importance of professional advice in estate and tax planning.
Practical example: leveraging the rule for better wealth outcomes.
Final takeaway: thoughtful estate planning can save your heirs thousands in CGT.

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