Main home → Investment Conversion

What does converting your home to an investment actually cost you?

Most "rent out the family home" calculators ignore the parts that matter — the cost base reset at conversion, the 6-year absence rule, and the partial CGT math that kicks in afterwards. This one doesn't.

Your saved conversions
Save this home-to-investment scenario
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Your situation
Enter when you bought the property as your home, when you'll move out (start renting it), and when you expect to sell it. All key tax outcomes flow from these three dates and prices.
1. Bought as home
$
2. Move out (convert)
$
Get a written valuation — this becomes your new cost base.
3. Sell
$
$
Used to calculate marginal tax rate on the rental loss / gain.
%
If you own jointly, enter your share (50% for half).
$
Agent commission + conveyancing + marketing on sale.
The 6-year rule only applies if you don't nominate another property as your main residence. (In tax terms: your PPOR.)
Rental period — cashflow
Annual figures during the rental period. Used to model the year-by-year cashflow impact of converting.
$
$
$
If owned outright, enter 0.
%
Interest-only assumed during rental period.
%
Of rent collected. Enter 0 if self-managed.
$
Get a depreciation schedule. Properties post-1985 build typically claim $3-8k/yr; new builds far more.
Result

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Enter your details above to see how the numbers stack up.
CGT scenarios at sale
Three possible CGT outcomes when you sell, depending on which rule applies.
Annual cashflow during the rental period
Per-year cashflow from rental income, expenses, interest, and tax effect on your wage.
How the rules work

The cost base reset (s 118-192): When a property that was your main residence first becomes income-producing, the ATO deems your cost base to be the market value at that date. This means capital growth during your main-home years is locked in tax-free — you only pay CGT on growth after conversion.

The 6-year rule (s 118-145): You can continue to treat a property as your main residence for up to 6 years while renting it out, provided you don't nominate another property as your main home. If you sell within 6 years, you can claim full main residence exemption — zero CGT. The 6 years "resets" if you move back in.

Partial exemption (if past 6 years or you have another main home): CGT applies to the proportion of ownership days the property was income-producing. The 50% CGT discount applies after the 12-month ownership rule. After 1 July 2027, proposed Budget 2026 rules apply indexation + 30% minimum tax on the post-cutoff portion.

Budget 2026 (proposed, not yet legislated): Negative gearing losses on established properties can no longer offset wage income from 1 July 2027 — losses are quarantined against future rental income or capital gains. New builds keep the current rules.

Tax terminology note: in ATO documents and accountant conversations, your "main home" is called your Principal Place of Residence (PPOR). They mean the same thing.

This calculator is for general information and education only and is not financial, tax, or legal advice. Always consult a qualified adviser before making decisions about converting your home to an investment property — particularly because the cost base reset, the 6-year rule, and partial exemption math are highly fact-specific. Budget 2026 figures are based on announced policy and may change. The Real Return is the intellectual property of Emil Josef.