dam owns a two-bedroom house in Brisbane which he purchased in March 2009 for $420,000. He moved into the house as soon as possible after settlement and lived there until he went overseas for work in July 2012. Whilst he was away Adam rented the Brisbane house out to a tenant for $400 per week. He returned to Australia and moved back into the house in November 2017. Whilst overseas, Adam was living in a rented apartment owned by his boss.

In February 2018 Adam listed the Brisbane house for sale with a local real estate agent at a selling price of $580,000. In May 2018 Adam received an offer of $560,000 which he accepted and a contract for sale was signed on 10 June 2018. Settlement took place on 15 July 2018.

Required:

Advise Adam of the taxation consequences of selling his house for $560,000.