Principal Place of Residence (PPOR)
Your main home, which is generally exempt from capital gains tax when sold.
Your principal place of residence (PPOR), commonly called your "main residence," is the home you live in as your primary dwelling. Under the main residence exemption, capital gains on the sale of your PPOR are generally fully exempt from CGT. This is one of the most valuable tax concessions in Australia, as property values can appreciate significantly over long holding periods.
To qualify for the full exemption, the property must have been your main residence for the entire period you owned it, you must not have used it to produce income (e.g., renting out a room), and you must not have claimed it as a place of business. If you used part of the property for income-producing purposes, the exemption is apportioned accordingly. You can only have one main residence at any time, though couples may be able to nominate different properties temporarily during a transitional period.
The 6-year absence rule (also called the temporary absence rule) allows you to continue treating a property as your PPOR for up to 6 years after you move out, provided you don't treat another property as your main residence during that time. This is particularly useful for people who move overseas or interstate temporarily, or who rent out their former home after purchasing a new one.