Effects of Renting part of a house

Friend is looking at renting part of their PPOR, probably airbnb or other short term but also possible longer term.

As this is a PPOR how will it effect CGT? Am i right thinking 6 year rule doesnt apply at all (seems rather unfair rent all out fine, rent part u pay more tax). Would it make you liable for pro rata % of the building for % of the ownership period?

How does this effect land tax, are you liable full or pro rata liable as it wouldnt 100% be a PPOR any more? The place in in SA but it would be good to know what its like in other states as well.

Cheers

 

If they rent out part and stay in the other then they arent absent and a pro-rata CGT applies for the period this arrangement occurs. ie They could lose 50% of the CGT exemption. The s118-192 costbase reset will never occur in the future and they need to understand third element costs and how to apportion and what info to permaenetly retain. Third element costs will increase the costbase so the CGT loss may be offset by these costs.

Land tax is generally exempt if the owner also resides. There can be limits with multiple room rentals.