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The bright-line test (also known as the bright-line property rule) changed on 1 July 2024.

The date you sell matters

If you sell a property on or after 1 July 2024, the bright-line test applies if the bright-line end date is within 2 years of the bright-line start date.

Start and end dates

If you sell a property before 1 July 2024, the sale will come under the bright-line test if the following apply.

  • You bought the property on or after 29 March 2018.
  • You are selling it within 5 years or before 1 July 2024 (whichever comes first).

Property sold before 1 July 2024

Selling your main home

Generally, the bright-line test does not apply if you sell your main home, and this has not changed but the criteria has changed. You can claim the main home exclusion if the following apply. 

  • You must use more than 50% of the property's area as your main home 
  • You must live in the property as your main home for more than 50% of the time you owned it. 

If you build on the land, you do not have to include the construction period when determining if your usage of the property qualifies for the main home exclusion.

Exclusions to the bright-line test

New rollover relief rules for associated persons

The rollover relief rules have been extended to the associated person rules. This includes: 

  • associated companies, or a person and an associated company 
  • relatives (within 2 degrees of relationship) 
  • trusts and settlors, beneficiaries, and related trusts 
  • a partner and a partnership 
  • a look-through company and an owner of that company. 

These new rules are limited to situations where the transferor and the transferee are associated for 2 years before the transfer. You can only claim rollover relief once in any 2-year period.

Ownership transfers and rollover relief


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Last updated: 04 Jul 2024
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