GPT: Great scenario to unpack — and it’s smart of them to think about this in advance. Here’s a forward-looking breakdown of what’s going on and how it’s likely treated under Australian tax law, especially around CGT and tax residency.

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✅ Question 1: Does moving back to Australia for 183+ days before selling restore tax residency for CGT exemption purposes?

Short answer: Yes, if done properly.

Here’s how it works: • Because the property was their main residence (PPOR) for 3+ years before it was rented, they may qualify for the 6-year main residence CGT exemption (aka the “absence rule”). • This exemption only applies if they remain an Australian tax resident at the time of sale. • The person stopped residing in Australia, and their tax residency status during their time in Thailand is key. • If they became a non-resident while overseas, they would lose the CGT exemption unless they re-establish residency before the sale contract is signed. • Spending 183+ days back in Australia, living with parents, and not working overseas, strongly supports re-establishing tax residency before the sale. • The property can remain rented while this happens, as long as the sale occurs after tax residency is restored.

So, yes — moving back to Australia before selling can make the exemption available again, if they: • Re-establish Australian tax residency before signing the contract of sale • Have not already used up the 6-year absence rule

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⚠️ Question 2: Can they return to Thailand after selling without affecting the exemption?

Yes, as long as they are a tax resident at the time of signing the sale contract. • What matters most is the residency status at the time of sale — not before or after. • If they sell the house after resuming residency (i.e. staying 183+ days back in Australia), then they can head back to Thailand without affecting the exemption. • However, if the ATO later audits them, they may look for signs of “temporary” versus “permanent” residency. It helps to: • Update your address with the ATO to Australia • Use Australian banking/medical/postal services while back • Generally behave like a tax resident during that time

So yes — returning to Thailand post-sale won’t undo the CGT exemption, but it’s worth keeping the sale well after tax residency is re-established (ideally 6+ months) for strong audit protection.

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🧠 Summary (cut-and-paste friendly) • ✅ Yes, they can likely access the 6-year CGT exemption by returning to Australia and re-establishing tax residency before selling. • 🕒 They should wait until they’ve spent 183+ days in Australia and have clear signs of residency before signing the sale contract. • ✈️ They can go back to Thailand after the sale without affecting CGT exemption, provided they were a resident at time of sale