How long do you have to live in a house to avoid capital gains tax in Australia?

You may be exempt from capital gains tax if you live in your property for at least six months after purchasing it. However, you must be able to show that it is your principal residence in this case. If you've bought and sold a property within a 12-month period, your capital gain is simply added to your income – easy. But if you've owned your property for longer than 12 months before selling, there are some calculations to do.