Improving the Main Residence The Main Residence of a person is generally free from CGT. This will generally include any improvements to the property. It therefore makes sense to maximise this, especially before selling a Main Residence. If you spent $20,000 to get an increase in value of $50,000 that would mean $30,000 in tax free money. Normally a person may have to earn $50k or $60k to make an after tax return of $30,000. That is a year’s salary for many persons. So improving the Main Residence is a great strategy - especially before a sale. But remember not to over capitalise otherwise your improvements may not get you more than the cost of the improvements.