How does CGT apply for me?

Q.

I will be renting out my apartment at the end of the year. My friend told me I should have the apartment revalued by a property valuer for tax purposes before I rent it out. They said I will know precisely the value of the property at the time it became an investment, then when I decide to sell in 10 years time, the capital gain will be the difference between the selling price and the valuation. Is this allowable under the Australian tax laws or must all capital gains be calculated as the difference between my selling and purchase price and then apportioning the capital gain over the years that I lived in the apartment and used it as an investment?

Provided the property was bought after 20th August 1996 you are liable for any increase in value from the date you rent it out. This is exactly as your friend has stated. However, you can be absent from your residence for up to six years without losing the CGT exemption if you don't claim any other property as your principal residence in that time.