The 6 year rule and renting part of your property out The 6 year rule allows a person absent from their property to continue to treat the property as the main residence – under certain conditions, see: Tax Tip 23: The 6 year Absent from Main Residence Rule Tax Tip 23: The 6 year Absent from Main Residence Rule But where you are renting out part of your property this rule cannot apply. This is because you wouldn’t be absent. In situations like this the property becomes income producing so its cost base is reset to the value as of the date the interest would have been claimable. The part of the property rented would then result in CGT being triggered when the property is sold. Example Renting out one room of your 2 bedroom unit. The 6 year rule could not apply if you were still living at that unit. Since the unit would become income producing it would be subject to CGT with the cost base now being the value at the date it was first rented. Half the property would be subject to CGT and half would be exempt.