Abbies Investment Property

Abbie purchased an apartment on 1 March 2005, for $300,000, and paid stamp duty of $15,000. She moved into it immediately. On 1 March 2015, Abbie bought herself a house. She immediately moved into it and, thereafter, treated it as her main residence. From this time (1 March 2015), Abbie rented out her original apartment to a tenant. Its market value at the time was $500,000. In March 2018, with regards the apartment, Abbie paid $2,000 for repairing recently broken windows and $30,000 for renovating the kitchen. Abbie sold the apartment on 1 March 2021 for $650,000.

Abbie had paid $15,000 in council rates for the period 1 March 2005 up till 1 March 2015, and $6,000 for the period 1 March 2015 to 1 March 2021.

Discuss the CGT consequences of the sale of Abbies apartment (6 marks).

Support your answers with Australian case and legislative authority