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I lived in my house for 5 years, then rented it for 3 years before selling. What part of the capital gain is tax-free?

Under ITAA 1997 s 118-145 ("absence rule"), you can keep treating the property as your main residence for up to 6 rental years.
Your 3 years of renting fall within that window, so the entire 8-year gain is exempt.
If rental exceeded 6 years, only the excess period would be taxable and you'd apportion the gain accordingly.

Reference: Section 118-145 ITAA 1997

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