Private ruling: Small business 15-year exemption for individuals
Date of advice: 19 January 2018
Published: June 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Do you meet the conditions in paragraph 152-105(d)(i) of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is satisfied that the conditions in paragraph 152-105(d)(i) of the ITAA 1997 have been met. Further information on the relevant factors and the small business 15-year exemption generally can be found on our website ato.gov.au and entering Quick Code QC52288 into the search bar at the top right of the page.

Relevant facts and circumstances: You are over the age of 55 . You operate a primary production business. You will make a capital gain from a capital gains tax (CGT) event that will happen in the 20XX financial year. The business duties that you undertake are: ● working full-time, seven days a week; ● decision making and planning for the business; ● primary production and machinery operation; ● mustering, branding and selling livestock; ● organising and supervising of paid workers and contractors; ● repairs and maintenance of equipment and infrastructure; ● regrowth control; ● property development including new fencing; dam and water infrastructure; structures, etc.; ● plant and equipment purchasing and replacement. In the 20XX financial year you will reduce your duties to: ● working limited half-days per week as required, being no more than 20 hours per week; ● checking water, fences and primary production condition once or twice per week; ● caretaking, if required, when the new operator is away; and ● assisting the new operator by performing light duties.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 152-105(d)(i)