Is Money From Selling a Share of My Home Taxed?
Whether money from selling a fractional share of your home is taxed turns on unsettled CGT questions — the framework, the gap, and where to get advice.
Selling your whole home is usually a tax non-event. The main residence exemption can wipe out the entire capital gain, provided the home was your main residence for the whole time you owned it and was never used to produce income. Selling only part of your home’s economic value — a fractional sale, the kind FundMyProperty and similar platforms offer — is a different transaction, and published tax guidance has not caught up with it.
Here is what is settled and what is not: general capital gains tax (CGT) rules, the main residence exemption and the CGT discount are all published and well established. Whether — and how — those rules apply when you sell a fractional economic interest rather than the whole property is not addressed anywhere in the Australian Taxation Office’s published guidance, as at July 2026. This article sets out that general framework only — it does not, and cannot, tell you whether your own proceeds will be taxed. Tax outcomes depend on your circumstances — speak with a registered tax agent before acting.
Is money from selling a share of my home taxed?
There is no blanket yes or no for this structure, and that is a more useful answer than a guess. Capital gains tax applies to a “CGT event” — most often a disposal of an asset for money — and selling an economic interest like a Brix, the fractional interest MyBrix sells on behalf of an owner, can be the kind of disposal CGT applies to. Whether tax is actually payable depends on two separate questions: does the main residence exemption reach a sale of this kind, and if it doesn’t (or only partly does), what would the taxable gain and any discount look like.
The first question does not have a published answer. The second question does, and it’s covered further down. Because the first is unresolved, nobody — not this article, not a general finance website, not a rule of thumb — can tell you in advance whether your own proceeds will be taxed. Tax outcomes depend on your circumstances — speak with a registered tax agent before acting.
What is the main residence exemption, and does it cover a fractional sale?
The main residence exemption is the rule that makes most home sales CGT-free. A home that was your main residence for the whole time you owned it, was not used to produce income, and sits on land of two hectares or less, is generally fully exempt from capital gains tax — the ATO’s main residence exemption guidance sets out the tests. If you don’t meet all of those conditions — for example, if part of the home was used to produce income — you may still get a partial exemption rather than a full one (as at July 2026).
The exemption is written around disposing of your ownership interest in the home. For a co-owner, the ATO works out any gain or loss in line with your ownership interest in the property — a 10% legal owner returns 10% of the gain. That is a disposal of a legal ownership share, whether it’s selling the whole property or a co-owner’s share of it.
A fractional sale is structurally different. A Brix is a fractional economic interest — a financial product under the Corporations Act 2001 (Cth) — not a transfer of any part of your legal or beneficial ownership of the land or the dwelling. You remain the registered legal owner of the property throughout; what changes hands is a defined share of the property’s future economic benefits, not a share of title. The co-owner rules above deal with disposing of a legal ownership share, so they don’t map onto a Brix sale — which leaves your legal ownership intact.
Whether the ATO would treat a Brix sale as a disposal of part of your main residence for exemption purposes, as the disposal of a separate financial product sitting outside the exemption altogether, or as something else again, is not addressed in the ATO’s published main residence guidance (as at July 2026).
This article does not say a fractional sale of your main residence is exempt from CGT, and it does not say it is taxable. Neither claim is supported by anything published for this specific structure, and stating either would be a guess dressed up as an answer.
If part of the gain were taxable, how would it be worked out?
If some or all of the amount you receive for selling Brix were treated as a taxable capital gain, the general CGT arithmetic would apply: capital proceeds minus cost base equals the capital gain, and capital losses are applied before any discount. As an Australian resident individual, holding the relevant asset for at least 12 months (excluding the acquisition day and the day of the CGT event) can then reduce the taxable amount by the CGT discount.
| Holder type | CGT discount (before 1 July 2027) |
|---|---|
| Australian resident individual | 50%, held ≥12 months |
| Trust | 50%, held ≥12 months |
| Complying super fund | 33.33% |
| Company | None |
| Qualifying affordable housing | Up to 60% |
Figures as at July 2026, from the ATO’s CGT discount settings. These settings apply to CGT events before 1 July 2027; changes enacted in June 2026 alter the discount regime for events from that date — our guide to capital gains tax on property covers the transition in full.
Whatever the eventual tax treatment turns out to be, keeping records matters regardless. For property generally, the ATO’s record-keeping rules for property require, as at July 2026, records covering the whole period you own the asset plus at least 5 years after you dispose of it. Settlement documents, valuation reports and any fee statements from a fractional sale are the kind of paper trail a registered tax agent will ask for. Tax outcomes depend on your circumstances — speak with a registered tax agent before acting.
How does a fractional sale compare with other ways to release equity, for tax purposes?
The general tax character differs by category, and the gap above is not unique to MyBrix’s structure.
| Way to release equity | What happens | General tax character |
|---|---|---|
| Downsizing | Sell the whole home | Main residence exemption usually applies in full |
| Reverse mortgage / HEAS | Borrow against the home | Not income; no CGT event created |
| Home reversion | Sell a share of future value | Not addressed by published main residence guidance |
| Fractional sale (e.g. MyBrix) | Sell an economic interest (Brix) | Not addressed by published main residence guidance |
Assumptions: an owner-occupied residential property, with “downsizing” assuming the home qualifies for the main residence exemption on ordinary terms (whole ownership period, no income use). The loan-based row reflects the general principle that borrowed money is not assessable income, and that taking out a loan, on its own, is not a disposal of an asset. A reverse mortgage is a credit product, while home reversion and a fractional sale are property transactions — that structural difference is set out in our guide to fractional property funding. The table shows category, not a verdict on your own position.
What should you weigh before assuming a tax outcome?
How long you’ve owned the home, and how you’ve used it. The main residence exemption’s ordinary conditions — whole ownership period as your main residence, no income-producing use — are the starting point for any tax question about your home, fractional sale or not.
The specific structure of the sale. A Brix sale differs from selling your whole home or a co-owner’s share of it. That difference is exactly why published guidance on the ordinary exemption doesn’t settle the fractional case, and why a registered tax agent needs the specific facts of your arrangement, not a general article.
Timing, if a gain does turn out to be taxable. The CGT discount settings above change for CGT events from 1 July 2027 onward. If your position depends on which side of that date a taxable event falls, that is a further question for your registered tax agent, not something this article can resolve in the abstract.
Records from day one. Whatever a tax agent eventually concludes, having settlement documents, valuations and correspondence on hand makes the assessment faster and more reliable.
Where can you get reliable information?
The ATO’s main residence exemption guidance and CGT discount pages are the primary sources for the parts of this question that are settled. Our guide to capital gains tax on property covers the general mechanics — cost base, the discount, the 2027 changes — in full, and our guide to fractional property funding covers how a Brix sale works structurally. Neither source, nor this one, can tell you whether your own proceeds will be taxed. A registered tax agent, working from your specific facts, can.
