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I beleive so, but house B will lose the CGT exemption during this period.

Its best to check the relevant legislation the 6 year rule, s 118-145 ITAA 1997 http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html The 6 month overlap rule, 1 118-140 ITAA 1997 http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.140.html