PPOR (Principal Place of Residence)

Buying & Selling

The home you genuinely live in as your main residence, which can unlock major CGT, land tax, and stamp duty concessions in Australia.

Full Explanation

PPOR stands for principal place of residence. In Australian property, it usually means the one home you actually live in as the centre of your life rather than an investment property or holiday home. PPOR status matters because it can unlock the main residence exemption from capital gains tax, state land tax home exemptions, and some first home buyer stamp duty concessions. For investors, PPOR status becomes especially important when you move out, rent the property, rely on the 6-year absence rule, or compare whether a property should be held as a home or an investment. You generally cannot treat two properties as your PPOR at the same time other than limited overlap rules when moving homes. The ATO and state revenue offices look at practical evidence such as where you live, receive mail, connect utilities, and keep your personal belongings.

Example

You buy an apartment in Sydney for $850,000 and live in it for three years before turning it into a rental. Because it started as your PPOR, you may be able to reduce or eliminate CGT on sale under the main residence rules, and while it was your home it would generally be exempt from owner land tax.

Frequently Asked Questions

Is a PPOR exempt from capital gains tax?

Usually yes, if the dwelling was your main residence for the full ownership period and you meet the ATO main residence rules. If you rented it out or used part of it to produce income, a partial CGT liability can apply.

Can I rent out my PPOR and keep the exemption?

Potentially. Under the 6-year absence rule, a former PPOR can continue to receive main residence treatment for up to six years while rented out, provided you do not treat another property as your main residence during the same period.

Related Calculators

Capital Gains Tax Calculator Land Tax Calculator Stamp Duty Calculator