CG tax on PPOR, when buying 2nd before selling first?

[Ace in the Hole]

Had this issue come up with a friend today.
He wants to buy and move into new PPOR now, but commit a longish settlement on selling current PPOR.
This might be a 3-4 month overlap.
i.e. he will in effect be holding 2 PPOR's during this time.

Does he have to pay CG tax on the 1st PPOR during this period?
If so, how is it calculated, value on the day he claims the 2nd property as PPOR and again on settlement date of the 1st PPOR?

He's getting some stupid advice from an accountant/solicitor that CG tax is calculated from the day he purchased the 1st PPOR, that would be crazy.

Thanks for any solid advice.

 

[Luv2Travel]

As per ATO:

http://www.ato.gov.au/General/Prope...ax/#Moving_from_one_main_residence_to_another

If you acquire a new home before you dispose of your old one, you can generally treat both dwellings as your main residence for up to six months if:

you lived in your old home and it was your main residence for a continuous period of at least three months in the 12 months before you disposed of it
you did not use it to produce assessable income (such as rent) in any part of that last 12 months when it was not your main residence, and
the new dwelling becomes your main residence.
The overlap period ends at the earlier of six months and when settlement occurs on the contract to sell your old home.

 

[Propertunity]

There is a 6 month overlap rule for just this situation, which allows you to hold 2 x PPORs while one is being sold with zero CGT implications

 

[Ace in the Hole]

Thank you guys.

Without even knowing, I told him there should be a 3-6 month grace period in this situation, so your answers confirm common sense is applied in cases like these.