Subdivide and build 2 houses

Hi,
I am currently looking at subdividing my block into 2. Currently my ppor is on here but is in the centre of the block so needs to be demolished. I want to Live in one of the 2 houses at the end but also want to minimise CGT. What period do I need to make one my ppor before I can sell it and move into the other as my PPOR to minimise tax. If I get one competed first (the one I want to sell) and move in while the other is still being finished (to be my final ppor) will that work?
I hope you understand where I'm heading
Thx Tim

 

I think gst is payable for 5 years after completion. If you sell one and move into the other, factor in the cgt that will be payable on the new PPR if you ever sell it.

 

Get specific tax and legal advice, but you must live it a new built property at least 3 months otherwise the main residence exemption will not be back dated to the previous ownership period.

 

If you build two and sell one - Its will likely be subject to GST and also NOT CGT but ordinary income tax. Then if you sell your own home it too may be subject to GST and taxed too. No five year rule applies !!

The issue with three month occupancy only occurs if the residence is a CGT asset. In many instances people confuse a main residence exemption with profit making. Its one or the other. Get advice so you do it right or it could be costly exercise.