Yes there are rules, you can live in it and make money off it as well, but seems to an after 2 year position.
Looks complex as all this does, but there is that CGT overlooking some things.
https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax/inherited-property-and-cgt
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