I own my PPOR in Melbourne on a 950sq block, perfect for subdivision. It's doubled in price since I bought it. From what I understand from the SRO website: 1) In Victoria you don't pay stamp duty to transfer a property to a partner. 2) You get hit with CGT after 6 years if you convert your PPOR into a rental. I recently found out about item 1) but always thought about item 2) so I never considered doing anything with this property. I spoke with a few people recently that made me start thinking ... Could I - Fix it up (render, roof, kitchen, bathroom, paint, carpet etc) - Have it valued - Transfer to my partner, fully out of my name - Subdivide - Rent both properties out - When time comes to sell (15+ years), would we only pay CGT on the portion the property has increased in value since I sold it as a whole lot? Since the land is now half the size, how does this work? Am I completely lost here or would the system work for me/us?