Capital gains tax exemptions are only available to sold properties that served as a principal place of residence. Since investment properties are used to generate income, it will not qualify for any exemptions.
However, there is a special rule that exempts a rental property if it is sold within six years from being converted from a principal place of residence. Take note, however, that this will only hold if you do not own another main residence during the time that the property is rented out.
While you generally can’t avoid capital gains tax when selling your investment property, you can definitely employ strategies to minimise it.
The best way to minimise your CGT is to keep accurate records so you can claim for more in your cost base. Any capital costs you incur would be added to your cost base, which will substantially lessen the capital gains taxable.
Furthermore, you must maintain ownership of the investment property for at least one year to automatically get a 50% discount.