Are you thinking of using your main residence as a rental property for the first time? A special rule may apply to your situation which affects the way capital gains or capital losses are calculated on the disposal of your property in the future.
Did you start using a part or all of your main residence to produce income for the first time after 20 August 1996? If the answer is yes, you are considered to have purchased your property at its market value at the time you first leased the property for income producing purposes if all of the following apply:
a. you purchased the property on or after 20 September 1985
b. you first used the property to produce income after 20 August 1996
c. if you sold the property, you would only be eligible for a part exemption on your capital gains tax because there was a period when the property was used for income producing purposes
d. you would have been entitled to a full exemption if a capital gains event happened to the property immediately before you first used it to produce income
If all of the above apply to you, you will need to calculate the capital gain or capital loss on the property using the market value of the property at the time you first used it to produce income.
Knowing this beforehand, it will be prudent to arrange for a market valuation of your property before you lease it. It will also be necessary for you to notify the State Revenue Office if the property is no longer your main residence as land tax may begin to apply.